Introduction and Legislative Context
The National Assembly has endorsed a tough new law that will overhaul how gambling is
conducted, advertised and regulated in the country, in an effort to address rising cases of
addiction, protect children and punish illegal practices. The revised Gambling Control Bill,
2023, backed by both the National Assembly and Senate, introduces harsh penalties for
violators and places heavy responsibilities on gambling operators, media outlets and
advertisers. It seeks to modernize Kenya’s gambling framework by imposing stricter
regulations, enhancing tax compliance, and protecting vulnerable groups—particularly
youth—from exploitative gambling practices.
Capital Requirements and Licensing Barriers
One of the most contentious aspects of the Bill is the imposition of stringent capital
requirements. Online gambling operators and national lottery firms must now lodge a
minimum of Ksh 200 million, while small-scale betting shops and online lotteries will require at
least Ksh 50 million. Land-based casinos may be required to demonstrate capital of up to Ksh
5 billion. Despite Senate proposals to lower these amounts, the National Assembly retained
the higher thresholds, arguing they ensure only serious and financially sound operators
participate in the market.
Player Verification and Consumer Protection
To curb underage gambling and enhance traceability, the Bill introduces strict player
registration protocols. All players will be required to verify their identity by uploading a selfie
with their national ID. This measure is part of broader consumer protection strategies aimed
at increasing accountability and minimizing abuse.
Advertising and Marketing Restrictions
The Bill imposes tight advertising regulations. All gambling-related advertisements must be
approved by the Betting Control and Licensing Board (BCLB) and the Kenya Film
Classification Board. Ads must display responsible gambling warnings, include the operator’s
license number, and must not feature celebrities, influencers, or suggest gambling is
glamorous or risk-free. Roadshows, outdoor advertising, and promotions near schools and
religious institutions will be restricted or prohibited outright.
Tax Reforms and Revenue Goals
Complementing the regulatory overhaul are significant tax reforms. Excise duty will shift from
15% of every bet to 5% of wallet deposits, while withholding tax on net winnings will fall to 5%
on withdrawals. These changes are designed to simplify compliance and expand the tax
base, including capturing revenue from offshore operators. In the 2023/24 fiscal year alone,
gambling contributed Ksh 22.3 billion to the national treasury, underscoring the sector’s fiscal
significance.
Growth of the Gambling Sector
The urgency of reform is further highlighted by the sector’s rapid growth. The number of
licensed operators in Kenya increased from under 100 in late 2024 to over 200 by mid-2025.
This rapid expansion, driven in part by mobile betting and digital platforms, has raised alarms
about consumer vulnerability and the need for modern regulatory tools.
Economic and Social Concerns
While the Bill’s intentions are commendable, its reliance on high capital thresholds raises
concerns. The financial requirements are likely to exclude small and medium-sized
enterprises (SMEs), particularly local entrepreneurs, from entering the market. This could
contradict national development goals such as Vision 2030 and the Bottom-Up Economic
Transformation Agenda (BETA), both of which prioritize economic inclusion and grassroots
empowerment.
Furthermore, concentrating the market among a few large or foreign-backed firms could stifle
competition, reduce consumer choice, and foster monopolistic behavior. There’s also the risk
of unintentionally driving gambling underground or toward unregulated offshore platforms,
especially if local alternatives become unaffordable or unavailable.
Regulatory Gaps and Enforcement Limitations
Despite the tough provisions, enforcement remains a challenge. The BCLB currently lacks the
authority to regulate or ban offshore digital games, such as the widely popular “Aviator,”
which continues to operate in Kenya beyond local jurisdiction. Without international
cooperation or technological capacity to monitor digital platforms, the effectiveness of the new
laws could be compromised.
Comparative Perspective: Africa and Beyond
Compared to jurisdictions like Nigeria and South Africa, Kenya’s use of capital thresholds as
the main gatekeeping tool is unusual. These countries emphasize compliance-based
regulation, tax enforcement, and responsible gaming frameworks. Globally, few regulators
use capital adequacy alone as a means of controlling market access. Kenya’s approach may
be overly aggressive and could isolate the country from regional investment opportunities.
Conclusion and Recommendation
While the Gambling Control Bill introduces much-needed reforms—especially in terms of
consumer protection, tax collection, and regulatory modernization—its overreliance on
capital requirements may hinder inclusivity, limit local participation, and concentrate power
in a few hands. Kenya would benefit more from a tiered licensing system, allowing smaller
operators to enter the market under lighter conditions but with strong compliance obligations.
This would ensure a fair, competitive, and accountable gambling sector that aligns with both
economic growth and public welfare objectives.
For more information, please email us on info@mmsadvocates.co.ke, call or WhatsApp on +254748998904
