Kenya's recent shifts in gambling regulation have marked a significant change in its gaming landscape, following the Gambling Control Act of the previous year. This act established a new authority, the Gambling Regulatory Authority (GRA), taking over responsibility from the Betting Control and Licensing Board and replacing legislation that had been in place since 1966.
Recent months have seen the GRA launch its inaugural licensing cycle, with new regulations coming into force on July 1. Under this regime, license applications are reviewed within 14 days, and a final decision must be issued by the board within 30 days. If an application is rejected, operators have 14 days to appeal to a tribunal.
John Mutua, the CEO of the Association of Gaming Operators Kenya (AGOK), shares that the provisions within the Gambling Control Act are “far-reaching in the best sense.” After years of instability, the industry is finally receiving the structural support it needs. “What we are seeing is a fundamental shift in how operators will do business in Kenya,” he explains. He emphasizes that compliance will be crucial for long-term survival, while non-compliance will make it difficult for operators to maintain their businesses. Mutua recalls a previous era of uncoordinated ministerial directives and ineffective regulation.
Peter Kesitilwe, CEO of the African iGaming Alliance, concurs with Mutua, stating that Kenya is moving toward a stable regulatory framework that has been historically absent. He highlights that the new framework offers clear oversight structures, appealing mechanisms, and enhanced responsibilities for responsible gaming.
The new regulations impose strict advertising guidelines, requiring all advertisements to be approved by the GRA and classified by the Kenya Film Classification Board. Advertisements must allocate 20% of their space to responsible gambling messages and cannot feature celebrity endorsements, nor can they be aired on TV or radio from 6 AM to 10 PM outside of live sporting events.
Additionally, the regulations mandate that any licensed entity must include a corporate structure where at least 30% of shares are owned by Kenyan citizens. Mutua indicates that this move reflects a commitment to transparency and accountability in the local gambling sector. The act aims to clarify who the key players are in every licensed operation to ensure oversight and accountability.
Taxation has also been a contentious issue in Kenya’s gambling sector, but the current regulatory framework seems to provide some clarity. Last July, Kenya enforced a 5% tax on withdrawals from betting accounts, replacing a previous 20% tax on net winnings. An additional 5% excise duty on deposits has taken the place of a 15% rate.
Mutua praised this tax structure, calling it “well-designed” as it is clear, verifiable, and easily enforceable. He believes that this transparency has led to a notable 29% increase in tax collection since the new framework was introduced, offering a beneficial scenario for the government and industry alike.
The changes have also spurred international interest, with Super Group CFO Alinda van Wyk noting that Kenya's previous tax regime had posed significant challenges. Improved regulations provide a path toward profitability, making Kenya attractive for international investors once again.
“This shift enables us to recognize that the environment has stabilized, and we will pursue opportunities in Kenya,” she stated, reinforcing the optimism surrounding the new regulatory atmosphere.
