Millions of individuals who engage in betting across Kenya are soon to face mandatory deductions from their stakes for both the Social Health Insurance Fund (SHIF) and pension schemes. These legal changes are set to make gambling significantly more expensive for punters.
The move, recently reported by NTV Kenya, aims to secure mandatory savings from a lucrative sector that currently handles billions of shillings annually.
Costlier Bets Under New Legal Framework
New policies will allocate a portion of every betting stake to government savings initiatives. The state is enacting these changes through powers granted to the betting regulator under the Gambling Control Act of 2025.
This Act allows the regulator to develop policies that will include a compulsory savings component for SHIF or a social retirement benefit for every single betting stake placed.
“A mandatory pension contribution or payment to SHIF will make betting costlier.”
The new contributions offer the government a significant financial boost, described as a “windfall,” due to the widespread betting craze. Punters currently place bets worth more than KES 150 billion every year.
SHIF Deductions on Betting Stakes // ai
Widening the Social Health Net
The primary goal of deducting money from betting stakes is to expand the membership pool of SHIF.
By drawing contributions from this large, often informal sector, the state seeks to grow the newly formed scheme.
The government relies on SHIF to eventually provide medical coverage for all Kenyans.
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This mandatory contribution comes at a crucial time, as the state health insurer is currently grappling with an unpaid bill of KES 76 billion owed to both private and public medical facilities.
Furthermore, the government is keen to enforce a savings culture, particularly among those who work in the informal sector.
Kenya’s Betting Boom: Key Statistics
According to NTV’s report, Kenya is home to the largest number of young gamblers on the African continent, surpassing major economies such as Nigeria and South Africa.
SHIF Deductions on Betting Stakes // ai
Key Data Points:
• Youth Participation: 76% of the nation’s youth gamble.
• Active Gamblers: An estimated 40.4% of Kenyans aged between 18 and 45 years old actively participate in betting.
• Monthly Spend: Gamblers spent an average of KES 1,825 on betting per month last year.
• Industry Growth: There are currently 188 betting firms licensed in the current financial year, a sharp increase from 13 years ago, despite the existing steep taxation.
Existing Financial Burden
Gamblers already endure heavy taxation, meaning the new SHIF/pension deduction adds yet another layer of cost.
Currently, the state already levies a 15% excise tax on the average betting stake. Additionally, it takes 20% of every winning bet as withholding tax.
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These existing tax rates have been gradually increased over the years as part of a state effort to discourage gambling.
SHIF Deductions on Betting Stakes // ai
The legal framework, however, does not yet clarify what will happen to gamblers who are already contributing to SHIF, either through salaried employment or under a household category.
by moses sagwe
