Last year, the Gambling Control Act in Kenya established the Gambling Regulatory Authority (GRA) and introduced a series of new regulations that have fundamentally changed the gambling landscape. The act replaced legislation that had been in place since 1966 and transferred regulatory oversight from the previously existing Betting Control and Licensing Board to the newly created GRA.
Kenya initiated its first licensing cycle under this new regime following the implementation of five subsidiary regulations on July 1. These regulations stipulate that licence applications must be reviewed within 14 days of submission, with decisions finalized within 30 days. If an application is rejected, appeals must be filed within 14 days to a tribunal.
John Mutua, CEO of the Association of Gaming Operators Kenya (AGOK), expressed optimism about the provisions of the Gambling Control Act, stating they are "far-reaching in the best sense," providing the sector with the much-needed structural foundations after years of regulatory chaos. He remarked, "What we are seeing is a fundamental shift in how operators will do business in Kenya. 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." Mutua highlighted that the previous regulatory framework had been a mixture of ministerial directions and an inadequately resourced licensing board.
Peter Kesitilwe, CEO of the African iGaming Alliance, echoed these sentiments, noting that Kenya is finally moving towards a stable regulatory framework that the sector has historically lacked. He commented that the current framework is more comprehensive and aligned than before, introducing clear oversight structures, an appeals mechanism, and stronger responsible gaming obligations.
The new regulations also enforce strict advertising controls; each ad must receive written approval from the GRA and classification by the Kenya Film Classification Board. Advertisements must allocate 20% of their space to responsible gambling messages and cannot feature celebrity endorsements or air on television or radio from 6 AM to 10 PM, unless during live sports events.
Furthermore, the existing Gambling Control Act requires licensees to have a corporate body with at least 30% of shares owned by Kenyan citizens. This stipulation reflects a concern for how businesses in Kenya’s gambling sector are capitalized, ensuring that tax obligations are tied to local stakeholders. Mutua emphasized this focus, stating, "That signals a deep-seated desire to ensure that tax obligations carry direct accountability from Kenyans who hold that local stake."
A significant part of the previous regulatory uncertainty stemmed from fluctuating tax rates. However, clarity has emerged following new regulations put in place last July, which established a 5% tax on withdrawals from betting wallets and a 5% excise duty on deposits, replacing previous rates of 20% on net winnings and 15%, respectively.
Mutua described this new tax structure as "well-designed, accurate, verifiable and simple to implement." He noted, "A tax structure that operators can comply with cleanly, and that the revenue authority can audit without ambiguity, has real value." Since the current framework's implementation, tax collection reportedly increased by 29%, benefitting both the government and the industry. This conducive environment fosters stability, allowing operators to invest and the government to budget effectively.
Additionally, the improved tax situation has attracted international interest. Alinda van Wyk, CFO of Super Group, mentioned that the stabilization of Kenya’s tax laws could make the market more appealing for expansion. She pointed out that previous tax issues had driven illegal operators to dominate, but the recent changes represent a more favorable setup for legal operations.
"Now that Kenya has changed its tax laws, you see the negative impact unreasonable taxes have on the industry," van Wyk said. She expressed optimism about the potential for profitability in Kenya, stating, "It’s definitely on the roadmap. "
