Kenya’s Booming Betting Industry: Growth, Challenges, and Future Prospects

With over 100 licensed betting sites operating legally, Kenya has become one of the largest betting markets in Africa, attracting significant global gambling investments. The country's betting landscape has transformed dramatically over the past decade, evolving from small betting shops in cities like Nairobi and Mombasa to high-tech online platforms and mobile apps, making betting accessible across urban and rural areas.

While Kenya lags behind Nigeria in terms of total sports betting numbers and revenue in sub-Saharan Africa, this is largely due to Kenya's smaller population—about one-quarter the size of Nigeria's. Nevertheless, many gambling experts believe Kenyans are the most enthusiastic bettors in Africa.

David Mwangi, a well-known betting expert and editor-in-chief at My Betting Sites Kenya, asserts that Kenya has the highest rate of sports betting in sub-Saharan Africa. “Kenya stands up there at the top when it comes to percentage of bettors in the population. I have done a lot of study on the betting patterns and behaviour across the continent and it is pretty clear that the average Kenyan is more inclined to bet than someone from another nation. The amount of money circulating around the Kenyan betting industry is insane,” Mwangi said.

A 2024 Geopoll study on betting in Africa backs this claim, revealing that 82.81% of Kenyan respondents admitted to placing bets, more than in any other country. South Africa came second with 73.94%, followed by Ghana at 73.03%. Similarly, a 2020 Geopoll study found that 83.90% of Kenyans had placed a bet at least once, surpassing Nigeria and South Africa, with 78% and 74%, respectively.

Several factors have contributed to Kenya’s betting boom, including the sharp rise in mobile penetration and, more crucially, the improved financial inclusion in the country. With mobile money services like MPesa allowing Kenyans to easily make payments and withdrawals, online sports betting has become highly accessible across the country.

This has turned Kenya into a multi-million-dollar gambling nation, or as some might say, a multi-billion shilling industry, with little sign of slowing down. Despite efforts by authorities to rein in the industry's rapid growth through strict tax regulations, the sector remains resilient. Major betting companies like Betway and Betsafe have exited the market due to these stringent rules, but other companies continue to seize the opportunity.

Kenya's ongoing struggle to control the growth of sports betting has been a delicate balancing act. On one hand, authorities are concerned that the rising gambling culture is eroding social morals and fostering laziness among young people. On the other hand, the government is keen to maximize tax revenues from the thriving industry.

Arthur Osiya, Principal Administrative Secretary of the Betting Control and Licensing Board (BCLB), reported that the regulatory body has collected Ksh88.4 billion in taxes over the last five years.

Kenya already enforces some of Africa’s most stringent tax rules on the betting industry. Operators are required to pay 15% of their Gross Gaming Revenue, 30% corporate tax on profits, and 16% income tax. This is in addition to annual licensing and compliance fees. Meanwhile, Kenyan bettors face a 12.5% excise tax on their stakes and a 20% withholding tax on their winnings.

These heavy taxes have caused a slight decline in both the number of betting companies and bettors in recent years. However, many operators continue to thrive, undeterred by the financial hurdles, and the market shows no signs of slowing down.

Looking ahead, the future of Kenya’s gambling industry may hinge on the implementation of the Gambling Control Bill of 2023. The bill proposes significant changes to the industry, including the creation of a new regulatory body, the Gambling Regulatory Authority, which would replace the BCLB as the overseer of sports betting, casinos, lotteries, and other forms of gambling.

The bill also targets critical issues such as gambling advertisements, betting expenditure, taxes, and underage gambling, which remains a serious concern in Kenya.

As the industry continues to grow, it will be interesting to see how authorities balance the need to control gambling while also maximizing tax revenue from the sector. The coming years will likely reveal how these legislative changes shape the future of betting in Kenya.

By fLEXI tEAM