Operating under the new Kenya Gambling Regulatory Authority (GRA), the new legal framework governing gambling in Kenya through the 2025 Gambling Control Act, the gambling operators in Kenya need to secure licensing by 30 June.
However, the licensing process has been impacted by a court case challenging the appointment of the GRA director general, Peter Maina Karimi. A former employee of the betting operator mCHEZA, he has been accused of having a conflict of interest.
As part of the new regulations, capital requirements will increase significantly, leading to operator consolidation in the gambling market. The level of security bonds that operators will need to secure in order to operate in Kenya will increase substantially, and will put added financial strain on small-to-midsize, local gaming companies.
The Kenyan gambling industry welcomed several new regulations including the extension of the gaming license period from 1 to 3 years, the introduction of B2B licensing for all suppliers and service providers, and the exemption of winners from withholding tax on winnings.
In addition, foreign gambling operators will be required to have a minimum of 30% of their ownership in Kenya, and the government is also considering reintroducing a 20% withholding tax for players.
Despite these various challenges, with approximately 8 million individuals gaming on a monthly basis and approximately $1 billion in gross revenue being generated per year in Kenya, the gambling industry in Kenya is one of the fastest growing gambling markets on the African continent and is transitioning through a major change in regulatory structure.
