Kenya's recent implementation of the Gambling Control Act marks a pivotal shift in the country’s handling of gambling regulation. The new law established the Gambling Regulatory Authority (GRA) to oversee the sector, replacing the previous system that had been in place since 1966 under the Betting Control and Licensing Board.
As part of these changes, Kenya initiated its first licensing cycle under the new framework after five subsidiary regulations took effect on July 1. One significant change is that all license applications will be reviewed within 14 days of submission, with a final decision required from the board within 30 days. If an application is rejected, operators have 14 days to appeal to a tribunal.
John Mutua, CEO of the Association of Gaming Operators Kenya (AGOK), praised the provisions of the Gambling Control Act as "far-reaching in the best sense," emphasizing the new foundations it provides for an industry that has experienced tumultuous regulations for years. "What we are seeing is a fundamental shift in how operators will do business in Kenya," he stated. "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, echoed Mutua’s sentiments, noting that Kenya is finally moving toward a more stable, long-term regulatory framework. He mentioned that the current system appears more comprehensive than previous approaches, incorporating oversight structures, an appeals mechanism, and stronger obligations for responsible gaming. "The key now is consistency. What markets struggle with is unpredictability," he remarked.
The new regulations include strict controls on advertising; all promotional materials must receive written approval from the GRA and classification by the Kenya Film Classification Board. Notably, 20% of advertisement space must be dedicated to responsible gambling warnings. Furthermore, endorsements by celebrities are now banned, and ads cannot be aired on television or radio from 6 AM to 10 PM, except during live sports.
Under the new act, licensees must also form a corporate body with at least 30% of shares owned by Kenyan citizens. Mutua highlighted this requirement as a sign of increased scrutiny in the sector, stating, "That signals a deep-seated desire to ensure that tax obligations carry direct accountability from Kenyans who hold that local stake."
Addressing the tax situation, the Kenyan government revised various tax rates last July, establishing a 5% tax on withdrawals from betting wallets, down from a previous 20% on net winnings, and a 5% excise duty on deposits, replacing a 15% rate. Mutua viewed this updated tax regime as “well-designed,” for its accuracy and ease of implementation, underscoring its value for operators and the revenue authority alike. He stated, "Since the adoption of the current framework, tax collection has grown by 29%, creating a genuine win-win for government and industry alike."
The new tax certainty is also attracting international attention. Alinda van Wyk, CFO of Super Group, noted that Kenya's revised tax laws could signal a renewed interest for expansion in the market. "When the legal operators can’t operate in a market because of the economics of the taxes, the illegal operators take over," she said. Now, with a more balanced tax setup benefiting all stakeholders, she expressed optimism about the market's direction, saying it would likely return to their roadmap for expansion in Kenya.
