Sports

New Law to Deduct SHIF and Pension Contributions from Betting Stakes

New Law to Deduct SHIF and Pension Contributions from Betting Stakes

Kenyan gamblers will soon give part of their betting money to SHIF and pension savings. This follows the new Gambling Control Act, 2025.

The law gives the Gambling Regulatory Authority of Kenya power to set policies that include health or retirement savings in every bet. This move will raise betting costs. Players already pay 15 percent excise tax per stake and 20 percent withholding tax on winnings.

The government hopes the deductions will grow SHIF membership and boost health contributions. Kenya has over 12 million active gamblers, according to past data.

The law does not say what happens to gamblers already paying SHIF through jobs or households.

The new Gambling Regulatory Authority, which replaces the Betting Control and Licensing Board, is drafting rules for the deductions.

Officials say the plan will promote a savings habit among informal workers. The State has been raising taxes and tightening laws to curb betting addiction. Despite this, gambling keeps growing. Kenyans spend over KSh150 billion yearly on bets.

A report by the Central Bank of Kenya and KNBS shows that 40.4 percent of Kenyans aged 18 to 45 bet regularly. Each spends about KSh1,825 monthly.

The new law sets the minimum bet at KSh20, excluding SHIF or pension deductions. Betting will now cost more but will help fund healthcare and retirement savings.

Also read: Kipchoge Finishes 17th in Debut New York City Marathon

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