Kenya's Gambling Control Act, enacted last year, led to the establishment of the Gambling Regulatory Authority (GRA) and introduced a suite of new regulations that replaced the legislation from 1966. With the GRA now overseeing the sector, the country has recently commenced its first licensing cycle under this new framework, following the implementation of five subsidiary regulations on July 1.
One significant change under the new rules is the requirement for license applications to be reviewed within 14 days of submission, with a final decision from the board mandated within 30 days. If applications are rejected, appeals must be filed with a tribunal within 14 days.
John Mutua, CEO of the Association of Gaming Operators Kenya (AGOK), asserts that the provisions of the Gambling Control Act offer a vital structural foundation for the industry, which has experienced years of regulatory instability. "What we are seeing is a fundamental shift in how operators will do business in Kenya," Mutua explained. He emphasized that compliance will be crucial for long-term survival in the market, while non-compliant businesses may struggle to endure.
For years, the industry faced challenges under a disjointed system of ministerial directives and a poorly resourced Betting Control and Licensing Board. Peter Kesitilwe, CEO of the African iGaming Alliance, echoed Mutua's sentiments, noting that Kenya is finally moving towards a stable regulatory framework that has been lacking.
"The current framework appears more comprehensive and aligned than the previous approach," Kesitilwe stated. He highlighted the introduction of clearer oversight structures, appeals mechanisms, stronger responsible gaming obligations, and enhanced online provisions. The consistency of these regulations will be key in fostering a dependable market environment.
Under the new regulations, strict advertising controls have been instituted. All advertisements require written approval from the GRA and classification by the Kenya Film Classification Board, with mandates that ads allocate 20% of their space for responsible gambling warnings. Furthermore, celebrity endorsements in ads are prohibited, and broadcasting restrictions apply from 6 AM to 10 PM unless during live sports events.
Additionally, the Gambling Control Act mandates that licensees maintain a corporate entity where at least 30% of shares are held by Kenyan citizens. Mutua indicated that this requirement demonstrates a commitment to transparency among businesses in the licensed gambling sector, moving away from previous operations that lacked accountability.
Regarding taxation, Kenya has faced significant regulatory uncertainty surrounding tax rates, which have been amended multiple times. However, as of last July, the government implemented a 5% tax on withdrawals from betting wallets, which replaced the former 20% on net winnings. There is also a 5% excise duty on deposits, down from the previous 15%.
Mutua described this new tax framework as "well-designed," emphasizing its accuracy, verifiability, and straightforward implementation. He noted that a simplified tax structure facilitates compliance for operators and audits for the revenue authority, leading to a 29% increase in tax collection since the current regulations were adopted. This growth illustrates the benefits for operators, government, and consumers alike, allowing for better planning and engagement within the market.
The improved tax clarity has attracted international interest from investors. Super Group CFO Alinda van Wyk highlighted Kenya’s challenging past tax regime and its impact on legal operators. Now, with the recent changes, Van Wyk perceives renewed potential for the market. "It gives us the ability to say, ‘Okay, now things are stabilised, we see a path to profitability and we will try Kenya again’," she remarked.
As Kenya moves forward under this new regulatory framework, both local and international stakeholders are keeping a close eye on the developments in the gambling sector.
