Last year marked the implementation of Kenya's Gambling Control Act, which founded a new Gambling Regulatory Authority (GRA) and introduced a series of regulations aimed at reshaping the gambling landscape in the country. This act replaced legislation that had remained unchanged since 1966, transferring oversight of the industry from the Betting Control and Licensing Board to the newly formed GRA.
Kenya has now initiated its first licensing cycle under this updated framework, following the activation of five subsidiary regulations on July 1. Key provisions include expediting the review process for license applications to 14 days from submission, with a board decision mandated within 30 days. In cases of rejection, appeals must be filed within 14 days, ensuring a structured approach to regulatory compliance.
John Mutua, the CEO of the Association of Gaming Operators Kenya (AGOK), expressed optimism about the act, stating that its provisions are “far-reaching in the best sense,” and provide much-needed structural foundations after years of regulatory upheaval. He mentioned, “What we are seeing is a fundamental shift in how operators will do business in Kenya,” emphasizing that compliance is now essential for long-term survival in the market.
Peter Kesitilwe, CEO of the African iGaming Alliance, echoed this sentiment, noting that Kenya is moving towards the stable, long-term regulatory framework that has historically been absent. He stated, “The current framework appears more comprehensive and aligned than the previous approach,” highlighting the introduction of clear oversight structures, appeals mechanisms, stronger responsible gaming obligations, and clearer online provisions.
Under the new regulations, advertising standards have become stricter. Every advertisement must receive written approval from the GRA and be classified by the Kenya Film Classification Board. Additionally, advertisements are required to allocate 20% of their space to responsible gambling messages. Moreover, no celebrity endorsements are permitted, and advertising on television or radio is prohibited between 06:00 and 22:00, except for live sports events.
The Gambling Control Act also mandates that licensees maintain a corporate structure in which at least 30% of shares are held by Kenyan citizens, reflecting greater scrutiny over local involvement in the gambling sector. Mutua suggested this policy signifies a greater commitment to ensuring that tax obligations are met by local stakeholders, enhancing accountability across the industry.
Taxation has been a significant issue for the gambling sector, with rates fluctuating frequently. Currently, the Kenyan government has imposed a 5% tax on all withdrawals from betting wallets, diminishing the previous 20% tax on net winnings. Additionally, a 5% excise duty on deposits has replaced a prior 15% charge.
Mutua characterizes this new tax regime as “well-designed,” stating that it is accurate, verifiable, and simple to implement. “A tax structure that operators can comply with cleanly, and that the revenue authority can audit without ambiguity, has real value,” he explained. This combination has reportedly boosted tax collection by 29%, facilitating a more favorable environment for both the government and the operators.
The promise of a stable tax framework is drawing international interest. Alinda van Wyk, CFO of Super Group, noted that Kenya’s previous tax regime posed significant challenges for legal operators. With the new tax laws now in place, she emphasized that Kenya is emerging as a market worth exploring again. “Now that Kenya has changed its tax laws, you see the negative impact unreasonable taxes have on the industry,” she remarked, indicating a path toward profitability in the market, stating, “So it’s definitely on the roadmap.”
