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Kenya already has some of the toughest online betting regulations in sub-Saharan Africa, and with the new Gambling Control Bill, these laws are poised to become even stricter.
The National Assembly approved the bill in January 2025, and it now awaits presidential assent from William Ruto to be enacted into law.
One of the most stringent aspects of the bill is the requirement for betting companies to deposit KSh. 200,000,000 in order to secure a license to operate in Kenya. This applies not only to online gambling firms but also to the national lottery.
The Senate had attempted to reduce this deposit to KSh. 20 million, but the amendment was overruled by the National Assembly. In defending the high deposit requirement, the committee argued that online gambling firms and the national lottery serve a much larger customer base than physical outlets, necessitating stricter financial security measures.
From a legislative standpoint, one can see why MPs are pushing for such regulations. Over the years, numerous betting firms have struggled to pay out large winnings due to insufficient financial reserves.
The impact of this law on the expansion of online betting in Kenya remains to be seen. Historically, Kenyan regulators have taken a hard stance against betting companies, forcing some major players out of the market through stringent policies.
The regulatory clampdown in 2019 led to the exit of industry giants Betin and SportPesa due to heavy taxation, while global operators like Betway and Betsafe have since severed their ties with Kenya over unfavorable legal conditions. While SportPesa has managed to make a comeback, the other brands remain absent from the market.
Despite these exits, Kenya’s online betting industry continues to expand, with over 100 licensed operators currently offering services to Kenyan players. However, the introduction of the KSh. 200 million security deposit may push some smaller firms out of the industry in the coming years.
On a more favorable note for operators, the National Assembly rejected the Senate’s proposal for a 15% gaming tax, stating that existing tax laws already sufficiently address the matter.
Kenya's taxation policies on betting remain burdensome, not only for operators but also for bettors themselves. Players are subjected to a 12.5% excise duty on all wagers, coupled with a 20% withholding tax on their winnings.
Despite these financial hurdles, Kenya remains one of Africa’s most active betting markets. Many factors contribute to this, chief among them being the widespread but often misguided belief that betting is a shortcut to financial success.
According to the Gambling Control Bill, the minimum stake for sports betting will remain KSh. 20, despite Senate efforts to reduce it to KSh. 1. MPs rejected this recommendation, emphasizing their intent to make gambling less accessible to school children, who would easily afford the lower stake.
Additionally, the National Assembly dismissed all of the Senate’s other proposed amendments, including a restriction on gambling company operating hours to between 10 am and 5 pm.
Another Senate recommendation sought to grant counties the power to enact their own gambling laws, but this was also rejected, ensuring that regulation remains under federal control.
The Kenyan gambling industry stands at a crucial juncture, as authorities strive to regulate its rapid growth while also maximizing revenue from this flourishing sector.
By fLEXI tEAM
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