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Kenya, already known for having some of the strictest online betting regulations in sub-Saharan Africa, is set to introduce even more rigid measures with the impending enactment of the new Gambling Control Bill.
The bill, which was approved by the National Assembly in January 2025, now awaits President William Ruto’s final approval to be passed into law. Among its many provisions, the most contentious is the requirement for betting companies to deposit KSh. 200 million in order to obtain a license to operate in the country. This regulation applies to both online gambling operators and the national lottery.
An attempt by the Senate to lower the deposit requirement from KSh. 200 million to KSh. 20 million was dismissed by the National Assembly. The committee defending the higher amount argued that online gambling platforms and the national lottery typically accommodate more players than physical betting outlets, necessitating a larger financial security deposit to safeguard payouts.
The rationale behind this requirement is understandable, given that Kenya has witnessed several cases where betting companies have failed to honor large payouts due to financial constraints. Ensuring that operators have sufficient funds is seen as a necessary step to protect bettors from potential losses.
The impact of this legislation on the expansion of Kenya’s online betting industry remains to be seen. Historically, Kenyan regulators have maintained a tough stance on betting companies, often imposing stringent policies that have driven some major players out of the market.
A significant taxation crackdown in 2019 forced two of the country’s leading betting firms at the time, Betin and SportPesa, to exit the market. Since then, global betting giants such as Betway and Betsafe have also withdrawn from Kenya due to unfavorable regulations. While SportPesa has since made a comeback, the others have remained absent.
Despite these regulatory hurdles, the number of licensed online betting operators in Kenya has continued to rise, with over 100 companies currently providing legal gambling services. However, the new KSh. 200 million security deposit could lead to a decline in this number, potentially pushing smaller operators out of the market.
On a more favorable note for the industry, the National Assembly rejected a proposed 15% gaming tax recommended by the Senate, arguing that existing tax laws already covered the necessary levies.
Kenya’s betting taxation framework remains among the toughest in the region, impacting both operators and players. Bettors are subject to a 12.5% excise tax on all wagers, in addition to a 20% withholding tax on any winnings. Yet, this heavy taxation does not appear to have significantly deterred Kenyans, as the country continues to rank among Africa’s largest betting markets.
Several factors have been cited as contributing to the booming gambling sector, with one of the most prominent being the widespread but often misguided belief that betting offers a quick and easy route to financial success.
The Gambling Control Bill has also upheld the current minimum stake for sports betting at KSh. 20, rejecting a Senate proposal to lower it to KSh. 1. Lawmakers defended their decision by arguing that reducing the minimum stake would make gambling more accessible to schoolchildren, who can easily afford a KSh. 1 bet.
In addition to rejecting the minimum stake reduction, the National Assembly dismissed all other amendments proposed by the Senate. These included a recommendation to limit the operating hours of betting companies to between 10 a.m. and 5 p.m., as well as a proposal to grant counties the authority to establish their own gambling regulations. Instead, MPs opted to maintain gambling laws under federal jurisdiction.
As the Kenyan government seeks to curb the rapid expansion of the gambling industry while simultaneously maximizing tax revenue from the sector, these new regulatory measures signal a significant shift in the country’s approach to online betting. The coming years will reveal how the industry adapts to these changes and whether smaller operators can survive under the new financial requirements.
By fLEXI tEAM
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