Tag: betting in Kenya

  • BCLB Chair Jane Mwikali Must Go: A Regulatory Failure That Costs Lives

    BCLB Chair Jane Mwikali Must Go: A Regulatory Failure That Costs Lives

    The Blood is on Your Hands, Reverend Makau

    By Amos Seii

    The latest exposé of Prophet David Maina’s sacred swindle should be the final nail in the coffin for Rev. Dr. Jane Mwikali Makau’s catastrophic tenure as Chairperson of the Betting Control and Licensing Board (BCLB). Once again, we witness the same shameful pattern: a gambling scam destroys thousands of Kenyan lives, the media exposes it, and only then does our toothless regulator spring into theatrical action.

    How many more Kenyans must lose their life savings, their children’s school fees, their hope, before we admit the obvious truth? Rev. Makau and her board have failed spectacularly, and their continued presence at the helm of BCLB is nothing short of criminal negligence.

    A Pattern of reactive incompetence

    The Yahweh Media Services scandal is not an isolated incident—it’s the latest chapter in a damning chronicle of regulatory failure.

    For months, Prophet Maina operated his elaborate con game right under BCLB’s nose, siphoning millions from Kenya’s most vulnerable citizens through rigged religious gambling shows.

    Whistleblowers reveal the operation was so brazen that Maina himself boasted of making Sh1.1 million in a single day, with daily hauls of Sh600,000 during peak periods.

    Where was Rev. Makau? Where was her vaunted oversight?

    The answer is as predictable as it is infuriating: nowhere to be found until NTV’s cameras started rolling.

    This is the same regulatory body that only banned gambling advertisements last month after sustained public outcry and media pressure—as if they were somehow unaware that predatory betting had been ravaging Kenyan families for years.

    It’s the same board that sat idle while crash games like Aviator drove young Kenyans to suicide, only scrambling for action after the body count became impossible to ignore.

    Conflict of interest or outright corruption?

    Rev. Mwikali graces an event sponsored by a gambling company.
    Rev. Mwikali graces an event sponsored by a gambling company.

    Rev. Makau’s cozy relationship with gambling operators has become an open secret that stinks to high heaven.

    Her appearances at betting industry functions, her blocking of CEO Peter Mbugi’s efforts to ban deadly crash games, and her consistent pattern of soft-pedaling enforcement actions all point to one uncomfortable conclusion: the person tasked with protecting Kenyans from gambling harm appears to be in bed with the very predators she’s meant to regulate.

    Industry insiders whisper of “packages” and private meetings with betting giants.

    Whether these allegations are true or not, the appearance of impropriety is so overwhelming that Rev. Makau’s position has become untenable.

    When your regulator is seen as an endorser rather than an enforcer, the entire system collapses.

    The human cost of regulatory capture

    Behind every rigged game and every unpunished scam are real Kenyan faces. Ruth Wanjiku, the elderly woman who lost Sh6,000 in less than an hour to Prophet Maina’s con.

    Joseph Ng’ang’a, the widower who gambled away his children’s school fees chasing false promises.

    The unnamed young Kenyans who took their own lives after losing everything to Aviator’s rigged algorithms.

    These are not statistics—they are indictments of a regulatory system that has prioritized industry profits over human lives. Every day Rev. Makau remains in office is another day these predators operate with impunity, knowing full well that Kenya’s gambling regulator is either incompetent, compromised, or both.

    The ‘Prophet’ Maina scandal: A case study in failure

    The Yahweh Media Services investigation reveals the depths of BCLB’s dysfunction.

    Prophet Maina operated multiple gambling platforms disguised as religious programming, using emotional manipulation and technical deceit to drain money from Kenya’s poorest households.

    The operation was so sophisticated that it included fake winners, scripted emotional appeals, and systematic targeting of vulnerable demographics.

    BCLB CEO Peter Mbugi admits the operation held no gambling license and was not permitted to conduct any form of gambling.

    Yet it operated for months, if not years, generating millions in illegal profits.

    When finally confronted, Maina simply pivoted to claiming he offered “lending services” instead of gambling—a transparent lie that any competent regulator should have seen through immediately.

    This is the regulatory environment Rev. Makau has created: one where sophisticated fraudsters can operate with virtual impunity, knowing that enforcement is reactive, toothless, and easily circumvented.

    The aviator debacle: When politics trumps public safety

    The internal conflict over banning Aviator and other crash games reveals everything wrong with Rev. Makau’s leadership.

    When CEO Mbugi proposed urgent action to address the growing suicide epidemic linked to these predatory games, Rev. Makau reportedly blocked him, issuing instead a watered-down directive that merely asked betting companies to resubmit paperwork.

    This wasn’t regulation—it was obstruction. While Kenyan families buried their children, Rev. Makau was apparently more concerned with protecting industry interests than saving lives.

    The March 25 memo that emerged from this internal sabotage stands as a testament to regulatory capture, prioritizing bureaucratic theater over meaningful action.

    Time for accountability

    Rev. Dr. Jane Mwikali Makau must resign immediately. Her tenure has been marked by consistent failure, apparent conflicts of interest, and a pattern of reactive governance that has cost Kenyan lives.

    The gambling industry she was meant to regulate has instead captured her, turning BCLB into little more than a licensing rubber stamp for predatory operators.

    But resignation alone is not enough. There must be a comprehensive investigation into BCLB’s failures, particularly any financial relationships between board members and gambling operators.

    If the rumors of “packages” and private meetings are true, criminal charges should follow.

    Kenya deserves a gambling regulator that puts public safety before industry profits, that proactively identifies and shuts down predatory operations, and that treats the protection of vulnerable citizens as its primary mandate. M

    Under Rev. Makau’s leadership, BCLB has failed on every count.

    The next BCLB leadership must implement immediate reforms: proactive monitoring of gambling operations, rigorous algorithm audits for all games, mandatory cooling-off periods for players, and severe penalties for operators who target vulnerable populations.

    Most importantly, the regulator must be genuinely independent, free from the industry capture that has neutered current enforcement efforts.

    But first, Rev. Makau must go. Every day she remains in office is another day of failed leadership, another opportunity for predators like Prophet Maina to exploit regulatory weakness, and another chance for more Kenyan families to be destroyed by unregulated gambling.

    The blood of gambling victims is on her hands. It’s time for her to face the consequences of her failures and step aside for leaders who will actually protect the Kenyan people.

    Rev. Makau, your time is up. Resign now, before more lives are lost to your incompetence.

    The Writer is a media critic.

    Note: Opinions are writer’s own and do not necessarily represent the views of Kenya Insights.

  • Senator and Tech Firm Implicated in Multi-Billion Betting Tax Diversion Scheme

    Senator and Tech Firm Implicated in Multi-Billion Betting Tax Diversion Scheme

    Investigation reveals alleged manipulation of Kenya’s betting tax collection system, with billions potentially diverted through private channels

    Investigations have uncovered what appears to be a sophisticated system allegedly diverting billions in betting tax revenue away from Kenya’s official tax collection channels, with a prominent senator and a local technology company at the center of the allegations.

    Kericho Senator Aaron Cheruiyot, a key figure in Kenya’s ruling United Democratic Alliance (UDA) party, has been implicated in what whistleblowers describe as a scheme to intercept betting taxes before they reach the Kenya Revenue Authority (KRA), according to documents reviewed and sources interviewed for this report.

    The allegations first surfaced through political blogger Cyprian Nyakundi, known for his controversial exposés on political corruption.

    This investigation independently corroborates several key claims while providing additional context and details previously unreported.

    The System Switch: From Direct KRA Collection to Private Intermediary

    Under the previous administration, Kenya had implemented a direct tax collection system for the betting industry.

    Betting companies’ systems were directly integrated with KRA’s collection infrastructure, ensuring taxes were automatically deposited into government accounts without intermediaries.

    According to three former KRA officials who spoke on condition of anonymity, this system was dismantled shortly after the current administration took office.

    “The direct integration was working perfectly,” said one former senior KRA manager. “Every bet placed was tracked, and the withholding tax was automatically calculated and remitted to KRA. There was complete transparency.”

    The direct system was replaced with one utilizing Compulynx’s eRevenue collection platform—a system originally designed for county-level revenue collection such as parking fees and market stall charges, not for handling the billions flowing through Kenya’s lucrative betting industry.

    The Compulynx Connection

    Compulynx Limited, a Kenyan technology firm established in 1994, has primarily been known for retail and county revenue collection solutions. Financial records show that the company’s revenue dramatically increased after securing the betting tax collection contract.

    A review of company registration documents reveals significant changes to Compulynx’s ownership structure approximately three months before the betting tax collection system change.

    Several new shell companies emerged as shareholders during this period, though their beneficial ownership remains obscured through complex corporate structures.

    Multiple sources within Kenya’s betting industry, who requested anonymity due to fear of reprisals, confirmed that the new system charges service fees far exceeding industry standards.

    “We’re required to pay service fees exceeding 20% of the collected amount,” said an executive at one of Kenya’s top three betting companies. “The standard for such services globally ranges between 2-5%. It’s unprecedented.”

    The Revenue Paradox

    Despite Kenya’s betting industry experiencing substantial growth—with industry analysts estimating a 30% increase in betting volume over the past 18 months—government records show that tax revenue from betting has decreased by approximately 15% during the same period.

    Data from the Central Bank of Kenya and Treasury reports reveals this concerning trend: as betting activities expand, the corresponding tax revenue shrinks, creating what economists call an “inverse correlation” that defies normal market dynamics.

    Financial analysts consulted for this investigation estimate that if tax collection matched the industry’s growth rate, the government should be receiving an additional KSh 15-18 billion annually—funds that could address critical needs in healthcare, education, and infrastructure.

    Political Connections and Denials

    When confronted with these allegations, Senator Cheruiyot strongly denied any involvement, stating on social media: “I do not even know how to bet, let alone have interest in a betting firm or related business. Neither directly nor by proxy.”

    However, telecommunications records and meeting minutes obtained during this investigation show numerous communications between representatives of Compulynx, certain betting companies, and individuals from Senator Cheruiyot’s office during the period when the system change was implemented.

    A former UDA party insider, who requested anonymity, claimed that the deal created tensions within the party: “Several other politicians fought against this arrangement, not necessarily because they opposed it on principle, but because they wanted a piece of it themselves.”

    The Financial Trail

    Banking records analyzed by financial experts show substantial transfers between holding companies linked to the eRevenue system and offshore accounts in Mauritius and Singapore.

    “The money flow pattern is classic for tax avoidance or concealment structures,” said Dr. James Mwangi, an independent financial crimes expert not directly involved in the case. “Multiple layers of transactions make it difficult to trace the ultimate beneficiaries.”

    Government Response

    The Kenya Revenue Authority declined to comment specifically on the allegations, stating only that “all tax collection systems undergo rigorous compliance and efficiency reviews” and that they are “committed to ensuring maximum revenue collection for the benefit of Kenyans.”

    The Ministry of Finance, when approached for comment, indicated that they have “initiated an internal review of all revenue collection systems” but would not confirm whether this was related to the betting tax allegations.

    Next Steps

    The Ethics and Anti-Corruption Commission (EACC) has neither confirmed nor denied whether an investigation into these allegations is underway.

    However, sources within the commission indicate that preliminary inquiries have begun following formal complaints from civil society organizations.

    The National Assembly’s Public Accounts Committee is reportedly planning to summon officials from the KRA, Treasury, and representatives from the betting industry to shed light on the discrepancies in tax collection.

    As this story continues to develop, the key question remains: Where are Kenya’s betting tax billions going, and who is truly benefiting from the current collection system?

  • Kenya’s Silent Crisis: The Aviator Gambling Epidemic

    Kenya’s Silent Crisis: The Aviator Gambling Epidemic

    In Nairobi’s bustling informal settlements, a sinister crisis is unfolding behind mobile phone screens.

    The deceptively simple game called Aviator—where players bet money on a virtual plane that climbs higher with increasing multipliers until it suddenly crashes—has evolved from casual entertainment into what health officials now describe as a “silent epidemic” devastating Kenyan families.

    “I was supposed to be on a flight to Qatar for a real job opportunity,” says Dennis from Kiambu Ngegu. Instead, he lost Ksh 220,000 after placing a Ksh 1,000 bet that crashed at 1.00x odds. “I sold my woofer, my TV—everything went.”

    This isn’t just about money lost. It’s about lives shattered.

    The Perfect Storm

    Aviator’s mechanics are deceptively simple: place a bet, watch a plane ascend, and cash out before it crashes.

    The longer you wait, the higher your potential reward—but wait too long, and you lose everything.

    What makes it so addictive? The game triggers the same neurological responses as other forms of addiction.

    Ken Peter Munywa, a psychologist interviewed for this investigation, explains: “Many turn to gambling as a perceived solution to financial struggles. The hope is that through gambling, they can turn their lives around. But just like any addiction, things quickly get out of hand.”

    A whistleblower from inside one of Kenya’s top betting companies revealed disturbing truths about how the game actually works:

    “Most of the so-called winners you see with those big usernames staking large amounts and cashing out at perfect moments aren’t even real people. They’re bots designed to make the game look alive,” the source explained, speaking on condition of anonymity.

    Even more concerning: “The whole thing is programmed to react to user behavior. The bigger your stake, the lower your chances of walking away with anything meaningful, because the system recalibrates based on your amount.”

    Code Reveals Manipulation

    Brian Osoro, a software developer who analyzed leaked code allegedly used in Aviator games, published findings that support these claims.

    His April 2025 code review revealed that:

    – The multiplier value determining players’ potential winnings is predetermined, not random
    – This value appears inflated when few players are active to entice betting
    – When many players are active, the multiplier is reduced to minimize payouts
    – The game’s end point is controlled by administrators, not by chance

    “The house decides when the game should stop as opposed to it being a random event,” Osoro concluded.

    Lives Destroyed

    The human cost is devastating.

    A primary school teacher in Nakuru who began playing in 2023 lost her marriage, life savings, and mental health to escalating addiction.

    After draining her salary and taking a Ksh 350,000 high-interest loan to chase losses, she even squandered Ksh 57,000 meant for the family’s planting season, lying to her husband that the money was “swapped.”

    Her spouse eventually divorced her. She now lives alone in Nakuru, battling depression and withdrawal from society.

    In another case, a young professional working at a village bank took Ksh 1.3 million from the safe, losing it all in just one week.

    He was later discovered, taken to court, and his parents were forced to sell land to cover the debt.

    The most tragic outcomes include suicide. One family shared screenshots of their brother’s final bets—Ksh 101,000 twice, then Ksh 68,000, and more in a single night, totaling nearly Ksh 900,000 before taking his own life.

    “We buried him in our rural home in Baringo,” a family member said. “He was a graduate from Maasai Mara University with first-class honors.”

    Media Complicity

    As the crisis deepens, media organizations face growing accusations of complicity.

    A whistleblower from a leading vernacular media station alleged that broadcasters earn 20% commission on losses incurred by their audiences after promoting gambling platforms.

    SK Macharia.
    SK Macharia.

    Popular blogger Cyprian Nyakundi has specifically criticized media executives like SK Macharia of Royal Media Services: “Citizen TV broadcasts prime time advertisements for betting platforms and features alleged winners claiming fifty thousand shillings. It appears staged. SK Macharia, how much is enough? Young Kenyans are dying by suicide after losing everything to Aviator.”

    The silence from media leaders and politicians suggests wider complicity in a crisis “affecting an entire generation,” Nyakundi asserted.

    Public Health Crisis

    The State Department for Public Health has begun addressing the issue.

    Principal Secretary Mary Muthoni described online gambling as a significant threat to mental health and financial stability, particularly among youth betting with borrowed funds.

    “We are deeply concerned about the escalating cases of gambling-related distress—from debt and depression to suicide,” Muthoni stated.

    Proposed interventions include stricter regulations, awareness campaigns, and collaboration with media and telecommunications companies to limit promotion.

    Meanwhile, the Association of Gaming Operators Kenya has called for responsible gaming, outlining age verification and self-exclusion tools while supporting the Gambling Control Bill to ensure safety.

    More Than a Game

    “Aviator and other gambling systems are not just games, they are digital diseases,” said one anti-gambling advocate.

    “They spread far beyond the person holding the phone, and the real damage isn’t even visible on the betting screen. It’s hiding in kitchens where meals are skipped, in classrooms where school fees go unpaid, and in funeral WhatsApp groups.”

    For those who have escaped the cycle, the lessons are clear.

    “At least Mpesa can now retain funds,” said one former player who deactivated his betting accounts. “I don’t want quick money anymore.”

    But for many Kenyans, these lessons have come at an unbearable cost.

    As one relative of a victim put it: “This Aviator thing is a menace—a real menace!”

  • Kenya Forms Rapid Response Team to Tackle Youth Gambling Addiction Crisis

    Kenya Forms Rapid Response Team to Tackle Youth Gambling Addiction Crisis

    Government has established a Rapid Response Team to provide a multi-sectoral approach to the escalating crisis of online gambling addiction, among young people.

    This initiative comes as the Ministry of Health, through the State Department for Public Health and Professional Standards, expressed deep concern over the increasing cases of gambling addiction fueled by platforms like Aviator.

    In a statement, Principal Secretary Mary Muthoni noted that the response team will establish a dedicated helpline for individuals affected by gambling addiction and deploy counselors to learning institutions to provide psychosocial support.

    This as well as roll-out of targeted public awareness campaigns to educate communities on the risks of online gambling.

    “The Ministry will support a multi-agency study to assess the prevalence and full impact of gambling addiction in Kenya, with a view to informing effective policy and programmatic responses.” PS Muthoni added.

    The Principal Secretary noted that many young Kenyans are falling into severe gambling addiction, leading to financial distress, deteriorating mental health, and, tragically, incidents of suicide.

    “The Ministry of Health, through the State Department for Public Health and Professional Standards, has noted with deep concern the increasing cases of gambling addiction in the country, particularly among young people, driven by the growing popularity of online platforms such as Aviator.” She noted.

    Adding that: “Reports indicate a disturbing trend of young Kenyans falling into severe gambling addiction, leading to financial distress, deteriorating mental health, and, tragically, incidents of suicide. The Ministry highlights the addictive nature of these online platforms, which exploit psychological vulnerabilities and can induce behaviors similar to substance addiction. The severe consequences of this issue have prompted the urgent need for intervention.”

    Approximately 4.7 million Kenyans-representing 17% of the population aged 15 to 65 years are grappling with some form of substance use disorder.

    This reality paints a grim picture of the devastating health, social, and economic consequences facing families and communities nationwide.

    PS Muthoni confirmed that rehabilitation and addiction, including gambling, are now included in the healthcare benefit packages under the Social Health Authority (SHA).

    She remarked that the government will cover rehabilitation and addiction management costs beyond the existing outpatient mental health services.

    “Beyond the existing outpatient mental health services, the government will cover rehabilitation and addiction management costs. I urge all individuals and families affected by gambling addiction to take full advantage of this critical support. Our accredited rehabilitation facilities are equipped to offer comprehensive therapy and treatment.”

    Multi-Agency Task Force comprises of the Mental Health Division, that include Directorate of Preventive and Promotive Health, Mental Health Division, Drugs and Substance Use Control Division, Health and Wellness Division, Health Education and Promotion Division, Mathare National Teaching and Referral Hospital, Gilgil Mental Health Hospital, Psychology and Counsellors Board and the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA).

    Mental Health Awareness Month – May 2025

    Similarly, PS Muthoni noted that the Ministry will intensify national efforts to promote mental wellness as part of this year’s Mental Health Awareness Month in May, under the theme “Community.”

    She mentioned that the week of 12th to 18th May 2025 will feature focused activities to address gambling addiction across counties.

    The Ministry also urged parents, caregivers, and guardians to remain vigilant and proactive in protecting children and youth by monitoring digital activities and mobile applications in use, creating open and non-judgmental dialogue about the risks of gambling, recognizing warning signs, such as preoccupation with betting apps, secretive behavior, sudden financial issues, or academic decline.

    Further the PS called upon parents and guardians to seek professional help where addiction is suspected as well as encourage healthy alternatives, including sports, arts, and community involvement.

    While acknowledging that gambling addiction requires a whole-of-society approach, PS Muthoni called for the media outlets to support responsible reporting and awareness.

    She urged educational institutions to integrate gambling and addiction awareness in curricula while calling on religious organizations to offer guidance and community-based support.

    The PS also asked technology companies to strengthen controls and promote responsible gaming and urged gambling operators to adhere strictly to existing laws and ethical standards.

    Members of the public can contact the MOH Helpline: Dial 719 for immediate support as the health ministry establishes a dedicated national support system for gambling-related harm.

  • INVESTIGATION: ARE KENYAN BETTING JACKPOTS RIGGED?

    INVESTIGATION: ARE KENYAN BETTING JACKPOTS RIGGED?

    An insider’s allegations have raised serious questions about the transparency and legitimacy of multi-million shilling jackpots offered by betting companies operating in Kenya.

    The claims, if substantiated, suggest systematic manipulation that could be depriving Kenyan bettors of millions in rightful winnings.

    According to information provided by a source claiming to work at a major Kenyan betting firm, companies may be using sophisticated tactics to maximize profits while minimizing payouts through what the source describes as “ghost winners.”

    THE JACKPOT STRUCTURE

    The typical structure of these jackpots involves predicting outcomes for 17 different sporting events, with partial prizes for those who correctly predict 13, 14, 15, or 16 matches.

    These consolation prizes can range from Ksh 3 million for 13 correct predictions to Ksh 12 million for 16 correct matches.

    The headline-grabbing figure is often the full jackpot amount – sometimes advertised at Ksh 300 million – for correctly predicting all 17 matches.

    However, industry analysts note the mathematical probability of achieving this feat is extraordinarily low.

    THE ALLEGATIONS

    The most serious allegation involves the distribution of consolation prizes.

    According to our source, when players achieve near-perfect predictions (such as 16 out of 17 matches), companies allegedly create fictional “winners” to dilute the prize pool.

    “Instead of paying a player who correctly predicts 16 matches their rightful Ksh 12 million, they claim that 100 people correctly predicted these matches, meaning the reward must be split equally,” the source claims.

    “So the correct predictors of 16 matches end up getting Ksh 120,000 instead of Ksh 12 million.”

    If true, this practice would mean companies are retaining the majority of funds that should go to legitimate winners.

    THE ECONOMICS

    The financial incentives for such manipulation would be substantial.

    With approximately 3 million Kenyans reportedly participating in a typical jackpot at Ksh 99 per entry, betting companies collect around Ksh 297 million weekly just from jackpot entries.

    Financial experts consulted for this story note that with such revenue streams, companies could easily afford to pay out full consolation prizes while remaining highly profitable.

    REGULATORY OVERSIGHT

    The Betting Control and Licensing Board (BCLB), Kenya’s gambling regulator, is responsible for ensuring fair play in the betting industry.

    However, critics question whether sufficient auditing mechanisms exist to verify the actual number of winners for each prize tier.

    When contacted for comment, the BCLB stated that all licensed betting operators are required to maintain transparent records of all transactions and winners.

    However, they declined to comment on specific auditing procedures for jackpot distributions.

    CONSUMER PROTECTION

    Consumer protection advocates have long expressed concerns about Kenya’s rapidly growing betting industry.

    Legal experts note that proving such allegations would require access to internal company data that is not publicly available.

    In response to these allegations, gambling addiction specialists are reminding Kenyans of the fundamental principle that applies to all betting: the house advantage is mathematically built into the system.

    “Regardless of whether these specific allegations are true, the betting system is designed so that the average player loses money over time,” says Dr. Jane Mwangi, who specializes in gambling addiction treatment. “The house always wins in the long run.”

    The betting companies named in the allegations were approached for comment but had not responded by press time.

    This investigation continues as we seek verification of these claims. If you have information about betting industry practices, contact our investigative team through secure channels.

  • Petition Seek To Stop Money Laundering Through Betting Firms

    Petition Seek To Stop Money Laundering Through Betting Firms

    Banks are pushing for changes to the law that will compel betting firms to report suspicious deposits and withdrawals from gaming accounts in the latest plan against money laundering.

    Industry lobby Kenya Bankers Association (KBA) said betting sites offer convenient platforms to clean dirty money prompting the push to compel gaming firms to report suspicious bets to the Financial Reporting Centre (FRC).

    KBA petitioned Parliament to amend the Proceeds of Crime and Money Laundering (Amendment) Bill, 2021 and compel industry regulator Betting Control and Licensing Board (BCLB) to monitor suspicious bets and transactions totalling at least Sh1 million ($10,000) and above.

    The push targets punters dealing in large transactions, those putting money in their betting wallets and staking a small fraction of it as well as those making small, regular and suspicious bets.

    Betting firms are not currently required by law to report the suspicious transactions to FRC—which is mandated to track illicit cash— making it a convenient avenue for cleaning dirty cash.

    “Inclusion of Betting Control and Licensing Board (BCLB) since some individuals can use betting as an avenue for money laundering,” the lobby said in its petition.

    The petition is contained in the review of the Proceeds of Crime and Money Laundering (Amendment) Bill, 2021 that is currently before Parliament for debate.

    The committee’s decision on the proposal remains unclear with the Bill set for debate and passage into law before February.

    Chief executive officers of betting firms have in the past said that criminals can feed their illicit money into their betting wallets, bet a small share of the cash before cashing out with vast majority of the cash.

    A number of accounts have been frozen over the past two years as the government steps up the war on money laundering.

    The push comes two years since BCLB made it compulsory for betting firms to report transactions above Sh1 million ($10,000) or suspicious bets to the regulator.

    BCLB included the reporting obligations for betting firms in their annual licences granted from July 2019 amid increased concerns that betting firms are emerging as a vehicle to launder proceeds of crime and corruption.

    The State has since 2019 stepped up the war on betting sites amid the growing concerns that the multi-billion industry is being used to launder money.

    FRC last year opened investigations into SportPesa for possible money laundering in the wake of claims the sports betting firm wired $278 million (Sh30 billion) from its local accounts to offshore banks.

    Other betting firms have been flagged for possible money laundering for sending millions of shilling into the gaming accounts of punters.

    The betting industry has grown over the years to hit a combined revenue base of over Sh200 billion, offering a perfect market for criminals seeking to launder dirty money.

    Betting is in a list of other transactions targeted in the war on money laundering including selling of property; creation, operation and management of companies, management of bank, savings and shares accounts on behalf of clients.

    The Proceeds of Crime and Money Laundering (Amendment) Bill, 2021 also targets to designate advocates, notaries and other independent legal professionals as reporting entities for dirty cash dealings.

    The renewed bid comes ahead of the second assessment of Kenya for compliance with international anti-money laundering rules this year after the first one in 2010 found deficiencies in curbing illicit cash transactions.

  • How The Media And Betting Firms Are Used In Money Laundering

    How The Media And Betting Firms Are Used In Money Laundering

    National Treasury Cabinet Secretary Ukur Yatani is expected to furnish the National Assembly departmental committee on Finance and National Planning with financial details, records of tax remittances to Kenya Revenue Authority (KRA), paybill issued by telecommunication firms and beneficiaries of broadcast gambling by local radio stations.

    While raising private member’s question on the floor of the House today, Kiambaa legislator John Njuguna alias Ka-Wanjiku further demanded for a comprehensive breakdown of financial statements and revenue generated for the last one year.

    He singled out Inooro FM, Kameme FM and Gukena FM owned by Royal Media Services, Mediamax Network Limited and Radio Africa Group respectively as the major vernacular radio stations promoting the highly unregulated live lottery programs.

    “Could the Cabinet Secretary provide details on ownership and value of transactions of all paybills and paybill numbers registered by Safaricom, Airtel and Telkom Kenya used in betting and gaming activities by major vernacular radio stations and more particularly by Inooro FM, Kameme FM and Gukena FM?

    “Could the Cabinet Secretary further provide details on the financial statements of the paybill transactions, inclusive of names of beneficiaries, amounts paid and tax revenue generated within the last one year?”  He posed.

    Currently, unlike other betting activities being regulated by the Betting Control and Licensing Board (BCLB), the broadcast lotteries are disguised as promotional programs and thus go unchecked.

    Normally, privately registered companies including radio stations obtain paybill numbers from telcos firms and run the gaming shows as paid up promotional programs.

    “What action is the government taking to address alleged cases of money laundering activities being undertaken through betting activities by the broadcast media in Kenya?” The MP added.

    The radio stations are accused of siphoning money from people in the rural areas by running fake lottery programs from dawn to dusk.

    This year, BCLB expressed concern that the scenario has provided a fertile ground for unauthorized gaming activities and has also affected the general messaging of prize competitions and lotteries to a menial “send this and win” without informing the public what competition or lottery they are engaging in.

    Record show that radio covers more than 85 percent of Kenya’s population.

    In what has become a norm, the stations have incorporated shows with daily money games, very easy questions, and Lotteries to lure poor Kenyans to gamble with low amounts of money with hopes to win big.

    However, the total daily revenue collection is never disclosed.

  • Betting And Borrowing Amplified Safaricom’s Huge Profits

    Betting And Borrowing Amplified Safaricom’s Huge Profits

    Telco operator Safaricom Plc. Wednesday announced an improved performance, posting 12.1 percent growth in net earnings in the first six months of the year, despite the Covid-19 concerns.

    The firm saw net profit grow to Sh37.1 billion covering the period between April and September compared to Sh33 billion it announced in a similar period last year.

    It attributed that growth to increased borrowing through Fuliza and improved transactions via Lipa Na Mpesa – avenues that drove M-Pesa revenues.

    M-PESA revenue recorded strong performance growing 45.8 percent following the return of person to person and Lipa Na M-PESA transactions below Sh1, 000 beginning January 2021. Total transaction value grew 51.5 percent to Sh 13.7trillion.

    In March last year, the country’s apex bank, the Central Bank of Kenya (CBK) announced emergency measures to facilitate increased use of mobile money transactions instead of cash, as a way to curb the virus spread.

    The directive saw all M-Pesa transactions of up to Sh1, 000 discharged at no cost. Kenyans sent a high of Sh4.4 trillion for free when the waiver of fees subjected to such transactions were announced between March 16 and December 31 last year on the platform.

    “Innovation in digital financial services has been a key growth driver for M-PESA. We continue leveraging on technological innovation to enhance access to financial services for consumers and enterprise customers,” said Safaricom’s Chief executive Peter Ndegwa.

    Also felt to have contributed to the firm’s impressive earnings, is improving consumer confidence and business activity boosted by COVID-19 vaccination efforts as well as positive macro-economic projections by the World Bank which forecast the GDP to rebound strongly at 6.3 percent by December 2021.

    “In spite of the past year being one with far-reaching changes and extraordinary circumstances given the pandemic, the board is encouraged by the business resilience and recovery trajectory marked by a return to near normalcy,” commented Safaricom’s Board Chairman Michael Joseph.

    The operator has however, highlighted a host of barriers to its operations, citing increasing regulatory scrutiny, taxation- adjusted excise duty on telco products, looming general elections and political risk as well as mounting pressure on currency and consumer spending due to rising inflation, as some of its fears.

    Other include the ongoing conflict and civil unrest in Ethiopia in what the company fears will disrupt its operations in the populous nation.

    Safaricom on Tuesday evacuated some of its employees to Nairobi using commercial flights with more others scheduled to arrive in the country this week.

    The telco, alongside other partners is seeking to start Ethiopia operations next year, and will then gradually reduce Kenyan expertise and build the local workforce as the business grows.

    The debate around the firm’s market dominance also threatens to expose its brand image, even though Safaricom has a huge backing from the regulators Communications Authority (CA) and Competition Authority of Kenya (CAK) amid protest from smaller player.

    Last week for instance, rival subscriber Airtel Kenya Airtel claimed that CA’s unwillingness to declare Safaricom a dominant provider, had made it difficult for the company to compete commercially in the sector.

    In a 15-page presentation to the Senate Committee on ICT, the operator also accused CA of intentionally subscribing favours to Safaricom in spectrum allocation, despite heavily investing on the network to improve.

    Kenyans spent Sh83.2 billion to place bets in the six months to September through Safaricom’s M-Pesa platform alone, underlining the gambling craze that has become a national pastime.

    The telco’s disclosures show that the value of the bets jumped 69 percent from Sh49.2 billion a year earlier.

    Safaricom, the Kenya Revenue Authority (KRA) and betting firms are the biggest beneficiaries of the growth and intensity of betting activities, pocketing billions.

    The telco’s revenue from betting doubled to Sh2.95 billion from Sh1.48 billion. The taxman is estimated to have collected at least Sh6.2 billion from punters using M-Pesa.

    The KRA takes 7.5 percent of the value of bets placed besides 20 percent of winnings and corporate taxes on betting firms.

    The volume of bets funded from M-Pesa accounts surged 84.7 percent to 347.8 million, signalling a growing gambling addiction.

    The growth of betting comes despite the government trying to curb the activity through higher taxation and increased regulations.

    Betting is popular among young people – employed as well as the jobless — who see it as offering a game-like thrill besides an opportunity to make quick money.

    While a few punters get lucky and win large sums of money, the activity represents missed opportunities and losses for participants as a whole.

    The Sh83.2 billion wagered in the six-month period, for instance, is enough to buy 2.05 billion shares of Safaricom, equivalent to a 5.1 percent stake in the country’s most profitable firm.

    Such a stake would earn dividends of about Sh2.8 billion annually, based on the telco’s latest distribution of Sh1.37 per share for the year ended March.

    Betting is now the second-largest business line by revenue under M-Pesa’s payments and betting unit after consumer-to-business (C2B), which generated sales of Sh5.1 billion in the six months to September.

    The disclosures show that betting firms and punters are being charged some of the highest fees by Safaricom compared to other M-Pesa users.

    The full scale of gambling in the country is unclear but the bets funded from M-Pesa account are expected to represent the majority of the activity given the platform’s dominance in personal payments.

    Betting firms are the biggest beneficiaries of the betting craze but all of them are private firms which are not required to make their accounts public.

    A court case pitting the KRA against Pevans East Africa, which pioneered betting in the country using the SportPesa brand, highlighted the big business the company was doing before its operations were scuttled by the taxman.

    Court papers showed that Pevans alone took in bets worth Sh149.7 billion in 2018, making it the second-largest company in Kenya by revenue after Safaricom at the time.

    Pevans told the KRA that it paid out Sh129.6 billion or 86.5 percent of the bets placed in 2018.

    The company said it kept Sh20.1 billion as gross gaming revenue on which Sh4.8 billion worth of betting tax was due.

    It added that it had paid taxes worth Sh3.6 billion, leaving a balance of Sh1.2 billion.

    The taxman is, however, demanding a revised sum of Sh95 billion in what it claims are unpaid taxes by Pevans and which contributed to the cancellation of the company’s gaming licence in July 2019.

    The high margins in betting had attracted more than 100 companies but their number dropped significantly following the 2019 government crackdown and imposition of multiple taxes.

    It recently emerged that some of the gambling activities were being run by unlicensed operators.

    The Betting Control and Licensing Board (BCLB) in September announced that it had suspended 70 M-Pesa pay bill numbers for unlicensed or unauthorised gaming activities run through broadcast channels.

    The BCLB tabled the list during a meeting with the National Assembly’s ICT committee, which had directed BCLB to prove that the unlicensed gaming activities that are being run on radio and TV stations using playbill numbers issued by telecommunications companies were deactivated.

    The BLCB told the committee chaired by William Kisang that it had directed Safaricom to deactivate the pay bill numbers.

    “The board directed Safaricom PLC to suspend the…pay bill numbers on diverse dates between December 2020 and August 2021,” BCLB chief executive Peter Mbugi said.

    He said the 70 pay bill numbers were suspended as at December 22, 2020.

    He added that although BCLB had not conducted any study, it was possible that the gaming activities by the media can have harmful impact on the public, especially children.

    “The board has on several occasions picked this matter with media houses and has also been working with the Communications Authority of Kenya (CA) to curb the unauthorised promotions and advertisements,” he said.

    Mr Mbugi told the ICT team that the board in collaboration with the CA was reviewing the gaming advertisement guidelines and content to address emerging threats.

    The BCLB and the CA acting director-general Mercy Wanjau appeared before the committee to explain the reasons behind the rampant betting and gambling in the broadcast media and its effects to the public.

    The committee said unscrupulous operators had infiltrated the gaming sector.

    Ms Wanjau told MPs that broadcasters were responsible for advertising material transmitted by their stations and must therefore ensure that all advertisements are legal, honest, decent, truthful, and conform to the rules of fair competition.

    Mr Kisang asked the two regulators to furnish the committee with further information regarding the list of media outlets, paybill numbers and the period the operators have been running the paybill numbers.

    The committee has also asked the regulators to furnish it with details on any taxes avoided or evaded by the operators and the status of the crackdown on unscrupulous operators in the gaming sector across the media.

  • All Eyes on Mo Salah as Flying Liverpool Host Atletico Madrid

    All Eyes on Mo Salah as Flying Liverpool Host Atletico Madrid

    All eyes will be on red-hot forward Mo Salah when Liverpool host Atletico Madrid in the Champions League this season.

    The Egyptian wizard has cemented his place as one of the greatest players in Europe, having scored already scored 15 goals in as many games this season.

    He will be looking to add to his five in the Champions when Spanish side Atletico visits Anfield. Salah needs to grab headlines quickly especially after the heroics of rivals Cristiano Ronaldo and Robert Lewandowski. Ronaldo scored a brace to salvage a draw for Manchester United against Atalanta while Lewandowki grabbed headlines with a hat-trick in a 5-2 victory against Benfica.

    Punters looking to invest their money should seriously consider staking on Salah to score first in the match. Triple5bet have this outcome at 4.78 odds which is really lucrative considering the fact that he opened the scoring within eight minutes in this reverse fixture.

    Salah’s goalscoring form and considering the fact that he is also on penalty duties makes this outcome very possible.

    Liverpool are the only team in Europe’s top 5 leagues who have not lost a match so far. Bookmakers expect the reds to extend their stellar form with a win against Diego Simeone’s men. Therefore, a home win in this fixture should be straight and at 1.72 odds on Triple5bet, a really good option for punters.

    Other Champions League Fixtures on Wednesday are:

    Sporting CP VS Besiktas – Kick Off 2045

    Sherrif Tiraspol vs Inter Milan – Kick Off 2045

    Dortmund vs Ajax – Kick off 23000

    Manchester City vs Club Brugge – Kick Off 2300

    RB Leipzig Vs PSG – Kick Off 2300

    All these matches are available for betting on Triple5bet, the home of boosted odds in Kenya.

    Triple5bet has mouthwatering bonuses for both new and existing customers. New customers get 100% bonus on their first deposit.

    All you have to do is to open a new account at triple5bet.com, deposit and stake any amount from Ksh 50 to Ksh 5000 and claim your 100%.

    All existing customers also get a 50% bonus on their first stake of the day. These guys really know how to take care of their customers.

  • Champions League Predictions– Tough Away Matches For Man United and Barcelona (Stake High)

    Champions League Predictions– Tough Away Matches For Man United and Barcelona (Stake High)

    The penultimate Champions League match day is here starting with some scintillating games on Tuesday.

    Former European powerhouses Manchester United and Barcelona face tricky away games tonight, and any misstep could see Cristiano Ronaldo, who has won five Champions League titles, play in the Europa League for the first time in his career.

    Ronaldo scored a late winner when the Red Devils beat Atalanta3-2 at Old Trafford. However, the game could have been beyond reach for Reds were it not for David De Gea’s heroics and Atalanta’s wastefulness in front of goal.

    It will be a totally different story when Atalanta host Ole Gunnar’s men on Tuesday evening. Atalanta have quite a remarkable record this season, having only lost twice in front of their own fans. They need points if they are to qualify for the next round.

    That coupled with the fact that United have lost seven of their last 12 Champions League matches makes this a very tricky tie.

    Our pundits are predicting a home win in this fixture. Triple5bet have placed an Atalanta win at 3.04 odds, which I must say is very high considering Manchester United’s recent woes.

    Spanish giants Barcelona are even in a worst possible shape ahead of a trip to Ukranian side Dynamo Kiev. Barca are currently third on the log and out of the qualifying spots for the next round. They need to beat Kiev and hope that Bayern beats Benfica.

    However, that is easier said than done as Barcelona have not won any of their away matches this season. To make matters worse, they have only scored one goal away from home since August.

    The club was forced to fire Dutchman Ronald Koeman last week but even that did not inspire immediate change of form as they were held to a draw by minnows Alaves.

    Barcelona are the favorites in this fixture but something tells me Dynamo Kiev may surprise us. That is why I am predicting a home win at 5.06 odds on Triple5bet

    If you are crazy enough to go with an Atalanta win and Barcelona loss, you have a whopping 15 odds on Triple5bet. A Ksh 100 stake gives you some Ksh 1183after tax. It is a risky bet but also highly rewarding at the same time.

    Other Champions League Matches on Tuesday are:

    Malmo vs Chelsea – Kick Off 2045

    Wolfsburg vs RB Salzburg – Kick off 2045

    Bayern vs Benfica – Kick off 2300

    Juventus vs Zenit St. Petersburg – Kick Off 2300

    Sevilla vs Lille – Kick Off 2300

    Villareal vs Young Boys – Kick Off 2300

    All these matches are available for betting on Triple5bet, the home of boosted odds in Kenya.

    Triple5bet has mouthwatering bonuses for both new and existing customers. New customers get 100% bonus on their first deposit.

    All you have to do is to open a new account at triple5bet.com, deposit and stake any amount from Ksh 50 to Ksh 5000 and claim your 100%.

    All existing customers also get a 50% bonus on their first stake of the day. These guys really know how to take care of their customers.