Kenya's gambling industry is entering a new era following the implementation of sweeping regulatory reforms that industry stakeholders believe will replace years of uncertainty with a more stable and transparent licensing framework.

The country's new Gambling Control Act has introduced a dedicated regulator, clearer licensing procedures, stricter advertising rules and a simplified tax regime, changes that are already attracting renewed interest from international operators.

With the first licensing cycle under the new system now underway, many believe Kenya is positioning itself as one of Africa's most promising regulated gambling markets.

New regulator replaces outdated framework

The Gambling Control Act, adopted last year, replaced legislation dating back to 1966 and established the Gambling Regulatory Authority (GRA) as the country's new gambling regulator.

The GRA has assumed responsibility from the former Betting Control and Licensing Board and now oversees all licensing, compliance and enforcement activities.

Kenya officially launched its first licensing cycle under the new regime after five subsidiary regulations entered into force on 1 July.

The reforms introduce significantly tighter administrative timelines, requiring:

- Licence applications to be reviewed within 14 days.

- Final regulatory decisions within 30 days.

- Appeals to be lodged within 14 days of licence rejection.

Industry representatives say the new process provides the predictability operators have long been seeking.

Industry welcomes greater certainty

John Mutua, Chief Executive Officer of the Association of Gaming Operators Kenya (AGOK), believes the legislation represents a fundamental turning point for the sector.

"What we are seeing is a fundamental shift in how operators will do business in Kenya," Mutua said.

"Those who comply will survive long term, and those who choose to operate outside the compliance scope will find it increasingly difficult to sustain their business."

He noted that the previous framework relied heavily on ministerial directives and an under-resourced regulator, creating uncertainty for both operators and investors.

Peter Kesitilwe, Chief Executive Officer of the African iGaming Alliance, echoed that view, describing the reforms as a move towards a more comprehensive regulatory framework.

"The current framework appears more comprehensive and aligned than the previous approach," Kesitilwe said.

"It introduces clear structures, oversight mechanisms, appeals procedures, stronger responsible gaming obligations and clearer online provisions."

"The key now is consistency. What markets struggle with is unpredictability."

Advertising rules tightened

Among the most significant changes are new restrictions governing gambling advertising.

All advertisements must now receive written approval from the Gambling Regulatory Authority and be classified by the Kenya Film Classification Board before publication.

Operators must also dedicate at least 20% of every advertisement to responsible gambling messaging.

Additional restrictions prohibit:

- Celebrity endorsements.

- Television and radio advertising between 06:00 and 22:00.

- Broadcasting outside live sporting events during restricted hours.

The measures are intended to strengthen consumer protection while reducing gambling exposure among vulnerable audiences.

Greater transparency for operators

The new legislation also introduces stricter ownership and governance requirements.

Licensed operators must maintain a corporate structure in which at least 30% of shares are held by Kenyan citizens.

Mutua believes the reforms significantly improve transparency across the sector.

"That signals a deep-seated desire to ensure that tax obligations carry direct accountability from Kenyans who hold that local stake," he explained.

He added that regulators will now examine not only company ownership but also the individuals responsible for managing gambling businesses.

"The act wants to know who the key players are in every licensed entity. It answers the fit and proper persons question not just at ownership level but across key staff."

Tax reforms provide greater certainty

Kenya's gambling industry has experienced several tax changes in recent years, creating uncertainty for operators.

The latest reforms appear to have stabilised the fiscal framework.

The government replaced the previous 20% tax on net winnings with:

- A 5% tax on betting wallet withdrawals.

- A 5% excise duty on deposits, replacing the previous 15% rate.

According to Mutua, the revised tax structure is both practical and transparent.

"It is accurate, verifiable and simple to implement," he said.

"That combination of simplicity and transparency is precisely what a good tax regime looks like."

He added that tax collections have increased by 29% since the current framework was introduced, benefiting both the government and licensed operators.

"This is a structure that works for the punter, the operator and the government. Stability and predictability allow everyone to plan."

International operators take notice

The improved regulatory environment is also attracting renewed interest from international gambling companies.

Super Group Chief Financial Officer Alinda van Wyk said Kenya has returned to the company's expansion plans following the tax reforms.

"Kenya has had a very challenging tax regime for a long time," Van Wyk said.

"When it's irrational, when it's not clear, when the legal operators can't operate in a market because of the economics of the taxes, what happens is naturally the illegal operators take over."

She believes the new framework creates a healthier balance between government revenue, operator sustainability and consumer protection.

"Now that Kenya has changed its tax laws... it gives us the ability to say, 'Okay, now things are stabilised, we see a path to profitability and we will try Kenya again'. So it's definitely on the roadmap."

A new chapter for Kenya's gambling market

After years of regulatory uncertainty, Kenya's gambling industry appears to be entering a more stable phase.

With clearer licensing procedures, improved tax certainty, stronger governance requirements and enhanced responsible gambling measures now in place, stakeholders believe the country has established the foundations for sustainable long-term growth.

The success of the new framework will ultimately depend on consistent enforcement, but early signs suggest Kenya is becoming an increasingly attractive destination for both domestic and international gambling operators.

Sources: iGamingBusiness