In 2022, Kenya implemented the Gambling Control Act, which introduced the Gambling Regulatory Authority (GRA) and established a new framework for the country's gambling regulations. This act replaced legislation that had been in place since 1966, transferring oversight from the Betting Control and Licensing Board to the new authority.
Kenya has recently embarked on its inaugural licensing cycle under this revamped system, following the activation of five subsidiary regulations on July 1. These regulations stipulate that license applications must be reviewed within 14 days, with a final decision required from the board within 30 days. Furthermore, any rejected applicants have a 14-day window to initiate an appeal.
John Mutua, the CEO of the Association of Gaming Operators Kenya (AGOK), believes that the Gambling Control Act offers profound changes, setting a solid groundwork for the gaming industry after years of chaotic regulation. He stated, "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 criticized the previous system, which relied on a mix of ministerial directions and a poorly funded regulatory body.
Echoing this sentiment, Peter Kesitilwe, CEO of the African iGaming Alliance, noted that Kenya is moving towards a more consistent and stable regulatory framework. He remarked, "The current framework appears more comprehensive and aligned than the previous approach. You’ll find that it introduces clear structures, oversight mechanisms, an appeals structure, stronger responsible gaming obligations, and clearer online provisions. The key now is consistency. What markets struggle with is unpredictability."
The new regulations enforce strict controls over advertising, mandating prior written approval from the GRA for all ads, which must also receive classification from the Kenya Film Classification Board. Additionally, all advertisements are required to allocate 20% of their content to responsible gambling messages. There are also restrictions on celebrity endorsements and the broadcasting of ads on TV or radio between 06:00 and 22:00, except during live sports.
Under the Gambling Control Act, all licensees are now required to establish corporate entities with at least 30% of shares held by Kenyan citizens. Mutua interprets this as a sign of increased scrutiny over the financial structures of licensed operators, moving away from “briefcase operations [that] run opaquely.” He added, "That signals a deep-seated desire to ensure that tax obligations carry direct accountability from Kenyans who hold that local stake."
The act focuses on identifying key players within every licensed entity, addressing both ownership and the accountability of senior staff, which is essential for ensuring thorough vetting processes.
Tax rates have been another source of uncertainty in the Kenyan gambling landscape, with previous adjustments creating confusion. Recently, however, the government established a 5% tax on withdrawals from betting wallets, replacing the former 20% tax on net winnings. A new 5% excise duty has also been implemented on deposits, superseding the previous rate of 15%.
Mutua advocated for this tax framework, stating that it is "well-designed" and capable of being accurately implemented. He asserted, "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."
The tax changes are also attracting international interest. Alinda van Wyk, CFO of Super Group, expressed enthusiasm about reconsidering Kenya for expansion, citing past challenges with unpredictable tax regimes. She explained, "Now that Kenya has changed its tax laws, you see the negative impact unreasonable taxes have on the industry. They've reverted to much more of a setup of taxes that benefit not only the operators and the revenue authorities but also protect the customers. It 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.
