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Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.

Harambee Stars players are the latest millionaires in town, following their recent victory at the African Nations Championships (CHAN).

President William Ruto pledged to raise the initial promise of KSh 1 million to KSh 2.5 million per player for every match won.

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Ruto fulfilled the first promise, paying Harambee Stars players KSh 42 million after their victory against the Democratic Republic of Congo (DRC).

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This followed the Sunday victory against Morocco, where the players earned themselves another KSh 42 million.

Harambee Stars players pocketed KSh 500,000 each following their draw against Angola on Thursday, August 7.

The total amount each player has earned from the three games stands at 2.5 million.

According to the Ministry of Sports, Ruto’s appreciation to Harambee Stars comes from the National Treasury allocation.

In the current financial year 2025/26, the Treasury Cabinet Secretary (CS) John Mbadi allocated KSh 29.7 billion to the Ministry of Sports, Arts and Culture.

Kenyans have been raising questions about whether the money from the Treasury is subject to any taxation, or the players have it all.

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In an exclusive interview with TUKO.co.ke, tax lawyer Joseph Njapit quoted the Income Tax Act Cap. 470, noting that it does not exempt such rewards that the government has offered to Harambee Stars.

The tax lawyer noted that the Kenya Revenue Authority (KRA) treats athletic prize money, whether won locally or abroad, as taxable income unless exempted under double taxation treaties or by special statutory provision.

Njapit cited reforms introduced in 2024 to prevent double taxation on prize money earned abroad by Kenyan athletes.

However, he said, these reforms do not apply to locally sourced ex-gratia government payments..

The lawyer highlighted that the taxation of the government-issued rewards in question can be analysed based on:

He said the payment of the reward is linked directly to the performance of the team, which is a service that earns income.

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Njapit noted that the relevant exemptions in the First Schedule to the Income Tax Act do not extend to individual players receiving such rewards.

Harambee Stars reward payments may be classified as gains or profits from services rendered (even if such services are sporting in nature and undertaken under a national assignment).

They could also be treated as honoraria or bonuses, both of which fall within the taxable income bracket.

He said the source of the funds (National Treasury allocation) does not automatically determine tax-exempt status.

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Based on this analysis, the lawyer opined that:

Source: TUKO.co.ke