Kenya’s gambling industry pushes back against a licensing bill

Kenyan operators and industry associations strongly criticized the draft Gambling Control Act, calling the proposed payments and requirements “unprecedented and punitive.” In the view of market participants, the new rules could deal a serious blow to the legal sector, pushing business into the grey market. The comments were made at public forums held by the Gambling Regulatory Authority (GRA) at the Kenyatta International Convention Centre (KICC) in Nairobi on 31 March and 1 April 2026.

Where the bill stands

The regulator is holding public consultations on the draft Gambling Control Act, collecting proposals from market participants, experts and ordinary citizens. The forums at KICC were part of this procedure, as required under Kenya’s legislative process.

After the public participation period ends, the GRA plans to refine the final version of the document and send it to Parliament. That is why the stakes for the industry are higher than ever.

The main dispute: money and market access

The focal point of the debate was the financial part of the bill. Operators said that the combination of new fees, levies and bonding requirements makes operating legally economically unviable. High entry barriers are compounded by existing excise taxes and contributions, creating a cumulative burden that, in the industry’s view, could undermine the viability of licensed companies and reduce tax receipts for the budget.

The draft law provides for an impressive set of financial parameters:

• The application fee is 5 million shillings (≈$38 684), while the licence fee is lower at 4 million shillings (≈$30 947).
• High bonding requirements (security bonds), including a guarantee or cash deposit of 200 million shillings (≈$1.55 million).
• A new 10% levy on operators’ advertising budgets.
• For foreign companies, a paid-up capital requirement of 100 million shillings (≈$773 694) plus an additional guarantee/cash deposit of 200 million shillings.
• Separate payments are provided for jackpot products.

Why the model looks illogical for the legal market

Forum participants pointed to inconsistencies in the fee structure being proposed. Judith Kiragu, a board member of the Association of Gaming Operators of Kenya (AGOK), asked a direct question: “The application fee is higher than the licence fee itself. It is 5 million, while the licence costs 4 million. How can the fee for obtaining the document be higher than the cost of the licence itself?”

One market representative at the forum stressed that inflated barriers create a loophole for illegal operators, and urged the regulator to review the amounts of fees and guarantees while keeping the capital requirements.

A threat to the economy and jobs

Industry representatives warned of a cascade of negative consequences: mass business closures, job losses and reduced activity in the regulated sector. The result, they estimate, will be weaker compliance and a drop in tax collection.

A particular sore point was the existing 15% contribution from gross gaming revenue (GGR), earmarked for supporting sports infrastructure. Paul Mutegei, an AGOK representative, said: “We are already heavily taxed, while the tax base remains unchanged. Even the 15% GGR that goes to sports infrastructure will suffer or fall sharply if this new fee structure is introduced.” In other words, the new financial burden risks undermining the sources that fund the development of sport in the country.

Capital, guarantees and jackpots also drew criticism

In addition to licence fees, a separate line of complaints concerned capital thresholds for foreign operators and new payments for jackpot products. AGOK CEO John Mutua said that a jackpot is “no different from any other product” and should not be subject to additional charges. He noted that operators already maintain fixed deposit accounts to secure prize funds, and therefore additional payments lack economic justification.

Mutua also criticized the proposed requirement to calculate minimum capital adequacy quarterly, calling such frequency “too frequent” and likely to create operational inefficiencies. In his words, constant monitoring creates the feeling that the regulator is “looking over our shoulder all the time.” As an alternative, he proposed a semi-annual review cycle.

The regulator’s stance: player protection as a priority

The GRA, for its part, insists on the need for reforms. In the agency’s view, the sector has remained “under-regulated” for decades, and the current legislation dates back to the 1960s and is “wholly inadequate” for modern realities. GRA Director General Peter Karimi said: “The President has made it clear that the player must be protected. Responsible gambling and player protection, especially young people and children online, are our top priority as regulators. Everything else, including ensuring a fair operating environment and collecting taxes, comes after that.” The regulator emphasized that feedback from market participants will be taken into account when refining the final document.

The changes also affected betting. Regulation of sports betting, including online, is being transferred to the Gambling Regulatory Authority, which will oversee bookmakers, including their tax compliance. The regulator is also responsible for player protection. Similar regulatory models are used in some other African countries, including Rwanda. According to official data, Rwanda Sports Betting Sites have a state licence. which gives them the right to operate legally. Illegal sites, including offshore ones, are actively blocked.

Overall, this suggests that tighter market requirements are not limited to Kenya, but also affect other African countries.

A national lottery with up to 2% of GDP potential

In parallel with the licensing reform, the GRA is promoting an initiative to create a national lottery to be run by a licensed private operator. According to the agency’s estimates, the project could generate up to 2% of Kenya’s gross domestic product. One participant in the discussion indicated an intention to enter the sector in order to set an example of a “responsible operator,” putting player protection, transparency and fairness at the heart of the approach. The initiative’s unofficial slogan was the phrase Tucheze Tujenge Kenya.

What happens next

The public participation submission period closes on 13 April 2026. The GRA urged all interested parties to submit written comments by the specified deadline, after which the final draft will be prepared to be tabled in Parliament.