Kenya Launches New Gambling Licensing Cycle Under Reformed Law

Kenya Launches New Gambling Licensing Cycle – Comprehensive Reform Replaces 1966 Framework

Key Takeaways

• Kenya has launched its first licensing cycle under the new Gambling Control Act, with subsidiary regulations in effect from 1 July.
• A newly created Gambling Regulatory Authority now oversees the sector, replacing the Betting Control and Licensing Board.
• Licence applications must be reviewed within 14 days, with final decisions issued within 30 days and appeals filed within 14 days of rejection.
• New rules introduce strict advertising controls and maintain a requirement that at least 30 percent of licensed entities be owned by Kenyan citizens.
• A revised tax structure includes a 5 percent levy on betting wallet withdrawals and a 5 percent excise duty on deposits.

New Regulatory Authority Replaces Decades-Old Framework

Kenya has formally transitioned to a new gambling oversight structure under the Gambling Control Act, replacing legislation that dated back to 1966. The reform established the Gambling Regulatory Authority, which now assumes responsibility for supervising the sector from the former Betting Control and Licensing Board.

The new framework is described by industry representatives as a structural shift after years of regulatory uncertainty. According to John Mutua, CEO of the Association of Gaming Operators Kenya, the previous system relied on ministerial directions and an oversight body that was under-resourced relative to the size of the market. The updated law introduces defined oversight mechanisms and formalized processes intended to create greater clarity for operators.

Peter Kesitilwe, CEO of the African iGaming Alliance, states that the current framework appears more comprehensive and aligned than the earlier approach. He points to clearer oversight structures, an appeals mechanism, stronger responsible gaming obligations, and more explicit provisions for online gambling.

Defined Timelines for Licensing and Appeals

Kenya has now opened its first licensing cycle under the new regime. Five subsidiary regulations came into effect on 1 July, setting procedural requirements for applications and regulatory decisions.

Under the new rules, licence applications must be reviewed within 14 days of submission. A final decision by the regulatory board must be issued within 30 days. If an application is rejected, appeals must be filed with a tribunal within 14 days.

These defined timelines introduce fixed procedural steps for operators seeking market entry or renewal. For international companies evaluating Kenya, the structured process provides a clearer administrative pathway than under the previous system.

Stricter Advertising and Ownership Requirements

The reform also introduces tighter controls on gambling advertising. Every advertisement must receive written approval from the Gambling Regulatory Authority and be classified by the Kenya Film Classification Board.

In addition, advertisements must allocate 20 percent of their space to responsible gambling warnings. Celebrity endorsements are prohibited. Broadcast restrictions apply between 06:00 and 22:00 on television and radio, except during live sports events.

Ownership requirements remain in place under the Gambling Control Act. Licensed operators must establish a corporate body in which at least 30 percent of shares are held by Kenyan citizens. According to Mutua, the law places increased scrutiny on the capitalization of licensed entities and the individuals involved in operations. The framework requires authorities to assess fit and proper criteria not only at ownership level but also among key staff members.

The stated objective is to enhance transparency and accountability in the sector, including clearer identification of key stakeholders and responsible parties within licensed businesses.

Revised Tax Structure Replaces Previous Levies

Taxation has been a central issue in Kenya’s gambling market in recent years. The government last July enacted a 5 percent tax on every withdrawal from a betting wallet. This measure replaced a previous 20 percent levy on net winnings.

At the same time, a 5 percent excise duty on deposits was introduced, replacing a prior 15 percent rate. According to Mutua, the current structure is designed to be simple to implement and easier to audit. He states that since the adoption of the revised framework, tax collection has increased by 29 percent.

The shift from a net winnings tax to a withdrawal based levy changes how taxation is calculated and applied at the player level. For operators, the updated structure provides defined rates on deposits and withdrawals rather than a percentage on net winnings.

International Operators Reassess Market Entry

The revised tax and regulatory environment has drawn attention from international operators. Super Group CFO Alinda van Wyk states that Kenya had previously presented economic challenges due to what she describes as an unclear and irrational tax regime.

She indicates that the recent tax changes have altered the operating outlook. According to van Wyk, the updated setup creates conditions that could allow legal operators to operate sustainably in the market. She adds that Kenya is now again included on the company’s expansion roadmap.

Her comments reflect how taxation and regulatory predictability influence decisions by international betting and gaming companies when evaluating market entry or re-entry.

Our Assessment

Kenya’s Gambling Control Act replaces a regulatory framework dating back to 1966 and establishes a new supervisory authority with defined licensing timelines, structured appeals procedures, and stricter advertising and ownership rules. The introduction of fixed tax rates on withdrawals and deposits replaces earlier levies and has coincided with reported growth in tax collection. Statements from industry associations and an international operator indicate that the revised framework is being viewed as more structured and predictable than the previous system, with direct implications for licensing, compliance, and market participation.