Kenya’s Gambling Regulator Opens Its First Licensing Cycle as New Regulations Bite

Key Points

• The five legal notices known as Legal Notice Nos 111-115 in the Kenya Gazette came into force on 1 July 2026 to constitute the working framework of the Gambling Control Act, 2025 in all gambling operations in Kenya.
• The online bookmakers and online casinos are charged a licence fee of KES50 million ($387,500) each, while foreign firms need at least KES100 million ($775,000) in paid-up capital and KES200 million ($1.55 million) as a security deposit.
• The already existing firms are granted 60 days by Regulation 30(1) for moving to new licences but are faced with challenges from the High Court concerning the appointment of the Director General of the GRA and the withholding tax of 20%.

Kenya’s Gambling Regulatory Authority (GRA) has opened the country’s first licensing cycle under the Gambling Control Act, 2025. Five subsidiary regulations came into force on 1 July 2026, published as Legal Notices 111 to 115 in the Kenya Gazette on 30 June. The rules place Kenya’s gambling sector inside a legal framework it has never operated under before; demands around real-time data sharing, financial thresholds and technical compliance carry no precedent in the country’s regulatory past.

A Framework Built to Replace Six Decades of Gambling Law

Five sets of rules currently regulate the gambling industry in Kenya, addressing licensing, conduct of business, foreign operators, advertising, and appeals. All these rules effectively render obsolete the legal framework of the country that was set out through the provisions of the Betting, Lotteries and Gaming Act. “These Regulations set out the detailed operational framework that is required for a well-regulated and accountable gambling industry,” commented the GRA; the authority said that these rules “effectively implement the Act and help the Authority fulfil its mandate.”

Each regulation covers a separate layer of the market. Licensing terms and eligibility sit inside the Gambling Control (Licensing) Regulations, 2026. Platform standards fall under the Conduct of Gambling Operations Regulations. Foreign companies, advertisers and appellants each operate within their own set of rules.

Operators Must Now Open Their Systems to the Regulator

Inside the Conduct of Gambling Operations Regulations lies the change that will cost operators the most to implement. Every online gambling platform must give the GRA real-time access through a secure API. Systems must also connect to the Authority’s Central Monitoring System and the National Gambling Register.

The requirements run further than that. Geolocation tracking is compulsory, audit logs must be encrypted, player funds must be held away from operational accounts, and all customer data must be encrypted. Business continuity plans are required. Unless the Authority grants a formal exemption, gambling data must be stored and processed on servers physically located inside Kenya.

Costs Rise as the Market Gets Carved Into New Categories

Separate licence categories now exist for online bookmakers, online casinos and online lottery operators. Bookmakers and casinos each carry a licence fee of KES50m (US$387,500); lottery operators pay KES20m (US$155,000). Application, renewal and annual operating charges sit on top of those figures. For the first time, suppliers and service providers are pulled inside the regulatory perimeter.

Operators must notify all of their suppliers that GRA authorisation is required before services can be provided to any licensed gambling business. A full supplier list must reach the regulator within seven days of receiving the notice.

Foreign Operators Face a Steep Entry Price

Under the Foreign-Based Operators Regulations, companies serving overseas markets must hold paid-up capital of at least KES100m (US$775,000) and post a KES200m (US$1.55m) security bond. Compliance with host country laws is required. Operators must also take active steps to prevent unauthorised access to their services from within Kenya.

None of this landed without resistance. At public participation forums in Nairobi, held between 31 March and 1 April 2026, operators and representative bodies described the fee package as “unprecedented and punitive”. Paul Mutegi, who represented the Association of Gaming Operators in Kenya (AGOK) at those sessions, did not hold back: “We’re already a very heavily taxed industry, and you’re taxing the same base. The punters are still the same.”

Advertising and Player Protection Now Have Their Own Rule Books

A dedicated regulation governs gambling advertising in Kenya for the first time. All licence holders must operate responsible gambling policies, verify the ages of players and take part in a national self-exclusion scheme that prevents excluded people from accessing gambling services. Aware that the pace of change would unsettle parts of the market, the GRA sought to reassure: “The Authority assures all existing operators and prospective new applicants that the new licensing process and systems deployed will be seamless, user-friendly and are designed to foster a fair, competitive, and well-regulated gambling industry that balances economic growth with consumer protection.”

The Industry Has 60 Days, But the Regulator Itself Is Under Legal Scrutiny

Old licences hold for 60 days from publication of the Licensing Regulations, as confirmed by Regulation 30(1). All existing operators must apply for new licences before that window closes. The GRA framed the provision as a continuity measure.

That clock starts under a cloud. A constitutional petition before Kenya’s High Court contests the appointment of GRA Director General Peter Maina Karimi. The petition argues that his previous role as CEO of mCHEZA, a licensed betting operator, puts him in breach of the Act’s eligibility criteria. No ruling has yet been issued. Allan Mzungu, partner at MMS Advocates, set out what is at stake: “The concurrent timing of the appointment challenge and the licence renewal process inevitably creates a degree of regulatory uncertainty. Operators, investors and other stakeholders will be watching both the court proceedings and the licensing process closely.”

Scale, Concentration and the Weight of What Comes Next

The attention Kenya draws from across the industry is proportionate to its size. Around 8 million players are active each month, and gross gaming revenue has reached approximately $1bn, according to estimates. The three operators with the most market share, Betika, GameMania and Odibets, together account for close to half of total revenue. More than 100 companies hold online betting licences for 2025/26; only around 30 operate at any meaningful scale.

One piece of the new framework has drawn consistent backing from the sector: licences now run for three years, up from one year under the previous regime. “The new three-year cycle allows for better planning and a clearer view of how to achieve a return on investment. It makes the system much more stable and predictable,” said John Mutua, chief executive of AGOK, as reported in NEXT.io’s Kenya iGaming Market in Focus. The formal licensing of B2B suppliers has also been welcomed across the supply chain. Tom Ustunel, CEO of Sportingtech, described what it means in practice: “By formally recognising suppliers, platform providers and certification labs, Kenya is raising the bar for the entire ecosystem.”

There is further pressure bearing down on the sector. The recently introduced Finance Bill for the year 2026 includes a clause for introducing 20% withholding tax on winnings of players; should it be implemented, the time is estimated for September 2026. Speaking about this, Kresten Buch, chairman of PawaTech Group, described the general situation well: “The Kenyan market has seen various episodes of sudden changes in policies, which have been followed by corrections, but right now, it seems that things are getting more stable. However, the market still remains extremely volatile, and any changes in taxes or regulations may easily shift the direction.”

Expert Analysis

Five regulations in, the GRA finally has teeth. Compulsory API integration, server localisation and the formal registration of the entire supply chain will push compliance costs upward, most sharply for operators who built their businesses under lighter demands. Sixty days to transition is a short window by any standard. Set against that, the three-year licence term and formal B2B licensing framework give the market a degree of stability that Kenya has rarely been able to offer.

What the regulations cannot settle are the questions sitting above them. A court challenge aimed at the GRA’s own Director General introduces institutional instability at a moment when the licensing machinery needs to run without interruption. Should the Finance Bill’s proposed 20% winnings tax pass, operator margins will narrow in a market that already runs on volume rather than value. Regulatory overhaul and fiscal pressure have landed simultaneously; how Kenya manages both will tell operators and investors whether this moment marks a reset or a rupture.