The Finance Act 2026 reintroduces taxation of winnings from betting, lotteries, gaming and prize competitions. This marks a significant shift in the tax landscape for the gaming industry in Kenya.
Key Changes in Taxation
- Focus on Winnings: The focus of taxation is now on winnings, not withdrawals. This means that tax is calculated based on the amount won rather than the amount withdrawn from the betting account.
- Point of Payment: Tax applies at the point of winnings payment. The betting or gaming company is responsible for withholding the tax at the time the winnings are credited to the player.
- Withholding Tax (WHT): WHT will now be imposed on gross winnings payable.
Important Note: Both players and gaming operators need to be aware of these changes to ensure full compliance and avoid unexpected tax liabilities.
Stay Informed
The taxation of winnings is a complex area, and the reintroduction of these rules requires careful attention to detail. More updates and practical examples will be shared soon to help you navigate these changes.
Simplifying Your Tax Journey.