Kenya’s Gambling Control Act Ushers in Structured Regulation and Tax Stability, Attracting International Attention

Kenya’s long-awaited Gambling Control Act, enacted on 7 August 2025 and effective from 26 August, marks a fundamental overhaul of the country’s gambling regulation. The Act replaces the 1966 Betting, Lotteries and Gaming Act and establishes the Gambling Regulatory Authority (GRA) to take over oversight from the Betting Control and Licensing Board. Implementing regulations came into effect from 1 July, and a transitional period is set to end in February 2026, during which the GRA is formulating further rules and has suspended processing of licence applications that were pending under the old regime.

New Regulatory Authority and Licensing

The GRA now oversees all regulated gambling activities, including online gambling, which the Act specifically targets. Operators must obtain both a national licence from the GRA and a county trade permit for each physical premises, creating a two-step compliance model. Key licensing requirements include that applicants be a body corporate with at least 30% of shares held by Kenyan citizens, maintain a local bank account for gambling monies, and provide evidence of prescribed gambling capital. The Act introduces a wide range of licence types covering casinos, lotteries, bookmaking, online gambling, and gambling equipment providers. Licence applications must be reviewed within 14 days, with a final board decision required within 30 days, and appeals go to a newly established Gambling Appeals Tribunal (whose chair must be qualified for the High Court) within 14 days of rejection. Tribunal decisions can be appealed to the High Court.

Tax Reforms and Market Impact

The Act also brings significant tax changes that have settled years of uncertainty. Withdrawals from betting wallets are now subject to a 5% tax, replacing the previous 20% levy on net winnings, and a 5% excise duty on deposits replaces the earlier 15% rate. John Mutua, CEO of the Association of Gaming Operators Kenya, notes that the new tax structure is “accurate, verifiable and simple to implement,” adding that since its adoption, “tax collection has grown by 29%, creating a genuine win-win for government and industry alike.” This stability is drawing international operators back to the market. Alinda van Wyk, CFO of Super Group, says the earlier tax regime was “irrational” and unclear, but now “we see a path to profitability and we will try Kenya again.” The African iGaming Alliance’s CEO Peter Kesitilwe stresses that consistency is key: “What markets struggle with is unpredictability.”

Advertising and Consumer Protections

Advertising of gambling activities is heavily restricted under the Act. All ads must be approved in writing by the GRA and classified by the Kenya Film Classification Board. They must dedicate 20% of space or airtime to responsible gambling warnings, prohibit celebrity endorsements, and cannot be broadcast on TV or radio between 06:00 and 22:00 except during live sports. Online operators must run a GRA-approved control system covering security, payments, under-age protection, and anti-money laundering safeguards, and maintain a customer care centre in Kenya. Foreign operators can only be licensed if they are registered in Kenya with a physical address and meet GRA requirements.

Offences and Penalties

The Act carries a comprehensive set of offences with fines and prison terms. Operating without a licence, false declarations, unauthorised advertising, and breaches of online regulations can attract fines up to KES 1 million or a year in prison, while serious advertising violations carry penalties up to KES 20 million and long custodial terms. Unlicensed gambling operations face fines of up to KES 50 million. Operators are expected to gain clearer compliance guidance once the GRA completes its regulatory drafting.