In 2022, Kenya's Gambling Control Act initiated significant changes in its gambling regulations by establishing the Gambling Regulatory Authority (GRA) and introducing numerous new rules. This act replaced outdated legislation from 1966 and transferred oversight from the Betting Control and Licensing Board to the newly formed GRA.
Kenya recently commenced its inaugural licensing cycle under the reformed system, following the implementation of five subsidiary regulations on July 1. Among these new rules is a stipulation that allows for a review of license applications within 14 days, with a final decision mandated within 30 days. Should an application be rejected, an appeal must be filed within 14 days.
John Mutua, the CEO of the Association of Gaming Operators Kenya (AGOK), described the provisions of the Gambling Control Act as “far-reaching in the best sense,” arguing that it provides a necessary structural framework for an industry that has long faced regulatory chaos.
Mutua 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." He elaborated on the previous regulatory landscape, stating, “For years, we operated under a patchwork of ministerial directions and a Betting Control and Licensing Board that was, frankly, under-resourced for the market it was trying to regulate.”
Peter Kesitilwe, CEO of the African iGaming Alliance, agrees that Kenya is moving toward a more stable and long-term regulatory environment, which the sector has historically lacked. He noted, “The current framework appears more comprehensive and aligned than the previous approach. You’ll find that it introduces clear structures, including oversight mechanisms, appeals provisions, stronger responsible gaming obligations, and clearer online provisions. The key now is consistency; unpredictability has been a challenge for many markets.”
As part of the changes, strict advertising controls have been implemented. All advertisements must receive written approval from the GRA and classification by the Kenya Film Classification Board. Moreover, 20% of an advertisement’s space must be allocated to responsible gambling notices. Celebrities cannot endorse gambling ads, nor can such advertisements air on TV or radio from 6 a.m. to 10 p.m., except during live sports events.
Another requirement within the Gambling Control Act mandates that licensees establish a corporate entity with at least 30% of shares held by Kenyan citizens. This provision reflects a heightened focus on the capitalization of businesses in Kenya’s licensed gambling market, reducing the prevalence of opaque “briefcase operations.” Mutua highlighted the importance of this approach: “That signals a deep-seated desire to ensure that tax obligations carry direct accountability from Kenyans who hold that local stake.” He emphasized the act’s intention to identify key players in every licensed entity, enhancing accountability across ownership and staffing.
Taxation has historically contributed to regulatory uncertainty in Kenya, with rates fluctuating frequently. Recently, however, stability has emerged with the Kenyan government implementing a 5% tax on withdrawals from betting wallets, replacing the previous 20% tax on net winnings. Additionally, a 5% excise duty on deposits has been introduced, superseding the former 15% rate.
Mutua characterized this new tax structure as “well-designed,” stating, “It is accurate, verifiable, and simple to implement.” He argued that this framework, which has facilitated a 29% increase in tax collection since its introduction, benefits all parties involved: operators, the government, and consumers alike. “Stability and predictability allow everyone to plan – operators to invest, government to budget, and players to engage with confidence,” he concluded.
The clarity of the tax environment has also piqued the interest of international investors. Alinda van Wyk, CFO of Super Group, noted that Kenya's improved tax laws have reignited interest in the market, which had previously been stalled due to high tax barriers. She remarked, “Now that Kenya has changed its tax laws, you see the negative impact unreasonable taxes have on the industry… It gives us the ability to say, ‘Okay, now things are stabilised, we see a path to profitability and we will try Kenya again.’ So it’s definitely on the roadmap.”
