In the amendments that have been made to the Finance Bill 2025, which was voted through by the members of parliament on Thursday afternoon and now awaits presidential assent, members of parliament have cut excise duty on betting from 15.0% to 5.0%. This reduction of the excise tax, which affects prize competition and lotteries, is expected to increase the potential for winnings by increasing the amount wagered. While the decision has been hailed by industry players and some members of parliament as a way to boost investment and job creation, critics argue that the social consequences of such a move may outweigh any economic benefits. On the other hand, proponents argue that the lower tax burden will attract more investors, expand the digital betting infrastructure and create new employment opportunities in marketing, tech support and customer service.
According to the GeoPoll survey of 2024 on the betting scene in Africa, Kenya has one of the highest rates of gambling in Africa with 82.8%, followed by South Africa with 73.9% and Ghana with 73.0%. The promise of quick wealth has turned betting into a near-culture, especially in urban and peri-urban areas where unemployment remains high and financial desperation is widespread. Critics argue that this tax relief could worsen this situation. By making betting more accessible and potentially more profitable, the government is indirectly fueling a behavior that traps young people in cycles of financial loss, stress and disillusionment.
Families are bearing the burden as breadwinners divert essential income toward betting apps instead of food, school fees and healthcare. Financial instability has led to rising incidences of domestic conflict, divorce and even suicide in extreme cases. The move to ease taxation on betting could normalize the practice further, eroding the effectiveness of public awareness campaigns and undercutting community-level efforts to support addiction recovery and financial literacy.
The government has committed to addressing mental health as a public priority. However, gambling addiction has received minimal attention in Kenya’s health budgeting. As gambling platforms grow, so will the number of individuals seeking for psychological help, counseling or rehabilitation given that resources that are already overstretched. The revenue received through the tax deductions could have funded such programs particularly within vulnerable communities.
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This also displays confusion among the policymakers where they are cutting taxes for the betting industry while requiring citizens to bear the burden of higher taxes sends a conflicting message about national priorities. It also poses a credibility issue for the government’s stated commitment to promoting productivity, savings and entrepreneurship among Kenyan youth.
There is no denying that the gambling sector generates billions and employs thousands. However, the trade-off between economic gain and social harm must be carefully weighed. Critics argue that this tax relief could deepen Kenya’s addiction crisis and create long-term costs in mental health and social cohesion.
