In 2022, Kenya established the Gambling Control Act, creating a new body known as the Gambling Regulatory Authority (GRA) to oversee the gambling sector, replacing legislation that dated back to 1966. The GRA has now launched its first licensing cycle, following the introduction of five subsidiary regulations on July 1.
These regulations dictate specific timelines for the review of license applications—14 days for the initial review and a final decision from the board within 30 days. In case of rejection, operators have 14 days to appeal to a tribunal.
John Mutua, the CEO of the Association of Gaming Operators Kenya (AGOK), has praised the Gambling Control Act, stating its provisions are "far-reaching in the best sense," providing the necessary structural foundations the industry has long needed amid years of regulatory unpredictability. "What we are seeing is a fundamental shift in how operators will do business in Kenya," he stated to iGB. "Those who comply will survive long term, and those who choose to operate outside the compliance scope will find it increasingly difficult to sustain their business."
Peter Kesitilwe, CEO of the African iGaming Alliance, also recognized this shift towards a stable regulatory environment, noting, "The current framework appears more comprehensive and aligned than the previous approach. It introduces clear structures, including oversight mechanisms, appeals processes, stronger responsible gaming obligations, and clearer online provisions. The key now is consistency. What markets struggle with is unpredictability."
The new regulations impose strict advertising controls. All advertisements must receive written approval from the GRA and classification from the Kenya Film Classification Board. Furthermore, 20% of the advertisement space must convey responsible gambling warnings. Ads cannot feature celebrity endorsements or be aired on television or radio from 6 AM to 10 PM unless during live sporting events.
Under the revised legislation, licensees must establish a corporate structure in which at least 30% of shares are owned by Kenyan citizens. Mutua highlights that this demonstrates a commitment to accountability within the local gambling sector, ensuring transparency in capital ownership.
Regarding taxation, the landscape in Kenya has faced uncertainty due to fluctuating tax rates. However, a recent update has stabilized this situation. As of July 2022, the Kenyan government implemented a 5% tax on withdrawals from betting wallets, replacing a previous 20% levy on net winnings. An excise duty of 5% on deposits was also introduced, down from 15%.
Mutua regards this new tax structure as "well-designed," emphasizing its accuracy, verifiability, and ease of implementation. He explained, "A tax structure that operators can comply with cleanly, and that the revenue authority can audit without ambiguity, has real value. Since the adoption of the current framework, tax collection has grown by 29%, creating a genuine win-win for government and industry alike. Stability and predictability allow everyone to plan."
The new tax certainty has piqued the interest of international investors. Super Group CFO Alinda van Wyk indicated that Kenya is back on the expansion radar due to the improved tax framework. "Kenya has had a very challenging tax regime for a long time," she stated. "Now that Kenya has changed its tax laws, the negative impact of unreasonable taxes on the industry is visible. They’ve reverted to a tax setup that benefits operators, revenue authorities, and protects customers to some extent. This gives us the ability to say, ‘Okay, now things are stabilized, we see a path to profitability and we will try Kenya again.’ So it’s definitely on the roadmap."
