Kenya is preparing to impose a KSh 100 million capital requirement on online betting operators after the Senate approved the final version of the Gambling Control Bill, marking the end of legislative negotiations and clearing the way for presidential assent.
- •The new threshold, up from KSh 250,000, is part of a broader restructuring of the gambling sector aimed at weeding out undercapitalized firms and protecting player funds.
- •This requirement was also scaled down from an earlier KSh 200 million proposal which the mediation committee felt was too high.
- •The deposit will be managed by the newly established Gambling Regulatory Authority, which will take over licensing and compliance oversight from the former Betting Control and Licensing Board (BCLB).
“The Authority shall be the successor of the Betting Control and Licensing Board established under section 3 of the Betting, Lotteries and Gaming Act (now repealed). Subject to this Act, all the rights, duties, obligations, assets and liabilities of the Betting Control and Licensing Board existing at the commencement of this Act shall be automatically and fully transferred to the Authority,” the proposed bill stated.
The KSh 100 million requirement will be secured through a bank guarantee, effectively tying up the funds as a contingent liability. In practice, betting firms will need to secure backing from a financial institution, forcing them to undergo due diligence and external scrutiny of their balance sheets. Should a firm fail to meet its obligations, the bank is on the hook to cover unpaid winnings and customer deposits.
The bill also mandates real-time surveillance of all betting activity through an integrated electronic monitoring system, allowing the regulator to track wagers, payouts, and player balances across licensed platforms. The system is expected to tighten enforcement and plug leakages in tax collection.
A 15% tax on gross gambling revenue will be introduced, alongside a monthly levy of up to 1% to fund addiction treatment, research, and public awareness campaigns. Advertising will face tighter restrictions, with a ban between 6:00 am and 10:00 pm, limits on celebrity endorsements, and a requirement that 10% of all ads promote responsible gambling.
“A person who contravenes the provisions of this section commits an offence and shall be liable upon conviction to a fine not exceeding twenty million shillings or to imprisonment for a term not exceeding five years, or to both,” the bill states.
Operators will face higher compliance burdens, including mandatory audited accounts, record-keeping, and reporting. Penalties for non-compliance include fines of up to KSh 5 million and prison terms of up to 15 years for repeat violations.
The law also creates a self-exclusion framework, bars gambling on credit, and bans participation by minors. Regulation will be shared between national and county governments, with the former handling licensing and compliance for online platforms and national lotteries, while counties oversee physical permits and zoning.
Kenya ranks third place among Sub-Saharan Africa’s leading betting markets, with football remaining the top betting choice but the emergence of Aviator, a fast-paced digital game, magnifying concern. The explosion of betting as an alternative revenue stream in a country beleaguered by immense unemployment has presented challenges for the regulator who remain incapacitated to tame addiction.