{"id":72437,"date":"2026-05-13T05:14:58","date_gmt":"2026-05-13T05:14:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/kenya-narrows-crypto-offshore-gambling-escape-valve-in-finance-bill-2026\/"},"modified":"2026-05-13T05:14:58","modified_gmt":"2026-05-13T05:14:58","slug":"kenya-narrows-crypto-offshore-gambling-escape-valve-in-finance-bill-2026","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/kenya-narrows-crypto-offshore-gambling-escape-valve-in-finance-bill-2026\/","title":{"rendered":"Kenya Narrows Crypto-Offshore Gambling Escape Valve in Finance Bill 2026"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Treasury CS John Mbadi submitted Finance Bill 2026 to Parliament on April 30, 2026 targeting KSh 120 billion.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">VASPs to file annual returns to KRA under Tax Procedures Act amendment after section 6B.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The bill reintroduces 20% withholding tax on gambling winnings, reversing a previous removal.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Two Reform Lanes in One Vehicle Narrow Crypto-Offshore Escape for Kenyan Gamblers<\/h2>\n<p>Kenya\u2019s Treasury Cabinet Secretary John Mbadi <a href=\"https:\/\/www.cliffedekkerhofmeyr.com\/en\/news\/publications\/2026\/Kenya\/Tax-Exchange-Control\/tax-and-exchange-control-alert-8-may-Analysis-of-the-Finance-Bill-2026\" target=\"_blank\" rel=\"noopener noreferrer\">tabled<\/a> the Finance Bill 2026 in Parliament on Friday, April 30, proposing wide-ranging amendments to the country\u2019s tax framework. The bill <a href=\"https:\/\/www.capitalfm.co.ke\/business\/2026\/05\/parliament-invites-public-views-on-finance-bill-2026-tax-changes\/\" target=\"_blank\" rel=\"noopener noreferrer\">entered its public participation phase<\/a> on Monday, May 11, when the National Assembly formally invited written and oral submissions on the proposed amendments before review by the Departmental Committee on Finance and National Planning.<\/p>\n<p>The bill\u2019s provisions on mandatory annual reporting requirements for virtual asset service providers (VASPs) operating in Kenya, and a restoration of a previous 20% withholding tax on gambling winnings are of key interest to <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">cryptocurrency<\/a> and iGaming sector participants.<\/p>\n<p>Under proposed <a href=\"https:\/\/www.kenyans.co.ke\/news\/123081-finance-bill-2026-targets-crypto-digital-platforms-major-tax-overhaul\" target=\"_blank\" rel=\"noopener noreferrer\">amendments<\/a> to the Tax Procedures Act, VASPs facilitating exchange transactions, providing trading platforms on behalf of customers, or acting as counterparties or intermediaries would be required to file annual information returns with the Kenya Revenue Authority (KRA). A separate provision authorizes Kenya to enter international agreements for the automatic exchange of virtual asset tax information with partner jurisdictions, paving the way for cross-border data-sharing aimed at tackling offshore tax evasion through <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">cryptocurrency<\/a> platforms.<\/p>\n<p>On the gambling side, the bill <a href=\"https:\/\/www.tuko.co.ke\/business-economy\/economy\/625487-finance-bill-2026-list-taxes-proposed-by-william-rutos-administration\/\" target=\"_blank\" rel=\"noopener noreferrer\">reintroduces the 20% withholding tax<\/a> on winnings paid out by operators licensed under the Gambling Control Act, 2025, reversing the Finance Act 2025\u2019s removal of the same levy. The proposed framework layers the 20% on winnings on top of the existing 5% withholding on withdrawals, applicable to both residents and non-residents. The bill also expands the definition of \u201camount deposited\u201d for excise purposes to cover chips, tokens, credits, and any cash equivalents transferred for gambling, capturing all forms of value used at betting platforms regardless of their account structure. Mobile phone excise duty would rise from 10% to 25%, payable at the point of mobile network activation rather than import.<\/p>\n<p>The VASP reporting framework reflects Kenya\u2019s commitment to implement <a href=\"https:\/\/www.oecd.org\/content\/dam\/oecd\/en\/networks\/global-forum-tax-transparency\/commitments-carf.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">the OECD\u2019s Crypto-Asset Reporting Framework<\/a> (CARF). Kenya is on the second tier of jurisdictions committed to commence cross-border tax-information exchanges under CARF in 2028 or 2029, alongside Australia, Hong Kong, Singapore, Switzerland, and others. The country has not yet signed the CARF <a href=\"https:\/\/www.oecd.org\/content\/dam\/oecd\/en\/topics\/policy-issues\/tax-transparency-and-international-co-operation\/carf-mcaa-signatories.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Multilateral Competent Authority Agreement<\/a> that formalizes information-sharing relationships between participating tax administrations, but the proposed bill represents the domestic-law implementation step that typically precedes such a signature.<\/p>\n<p>The Kenya Revenue Authority is targeting KSh 2.985 trillion in tax revenue for the fiscal year beginning July 2026. The bill text currently lists July 1 next year as the effective date, which legal analysts at Cliffe Dekker Hofmeyr \u2013 a major Africa-focused law firm with an active Kenya tax practice \u2013 have flagged as erroneous and expected to be amended to July 1, 2026, with certain digital reporting requirements scheduled for January 1, 2027. Tightening regulated gambling and <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> reporting in the same legislative vehicle narrows the conventional regulator-crackdown-to-crypto-offshore migration pathway for affected sectors.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/kenya-narrows-crypto-offshore-gambling-escape-valve-in-finance-bill-2026\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Treasury CS John Mbadi submitted Finance Bill 2026 to Parliament on April 30, 2026 targeting KSh 120 billion. VASPs to file annual returns to KRA under Tax Procedures Act amendment after section 6B. The bill reintroduces 20% withholding tax on gambling winnings, reversing a previous removal. [&hellip;]<\/p>\n","protected":false},"author":3947362403,"featured_media":72438,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72437"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362403"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72437"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72438"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}