Kenya

African gambling regulation is not complicated by default, but Kenya is one of the markets that has put real weight behind enforcement, taxation, and technical supervision. This is not a jurisdiction for operators who plan to sit in a grey zone or test compliance through loopholes. If you expect to set up a gambling business in the country, be ready to work hard and reap solid benefits.

2WinPower prepared a practical guide to Kenya’s licensing reality. Our experts cover the legal basis, the regulator, the online permit types, the cost structure, and the compliance traps that shut down platforms. This way, our clients can be completely sure of the latest nuances of the jurisdiction's legal framework.

Legal Baseline

Kenya’s regulatory framework has recently gone through a hard reset. The old system under the Betting, Lotteries and Gaming Act (Cap. 131) has been replaced by the Gambling Control Act (Act No. 14 of 2025). The new statute was approved on 7 August 2025, published on 12 August, and enacted on 26 August.

A key practical point lies in the transition rules. Licences issued under the repealed law remain valid until expiry, after which the holder must apply under the new regime.

The central supervisor is the Gambling Regulatory Authority created under the 2025 Act, with a mandate that explicitly includes cooperation with the Kenya Revenue Authority (KRA) to establish a monitoring system for tax compliance.

The same law also builds “hands-on” oversight into the model. Inspectors can enter and check premises, seize documents or equipment, and offences by corporate bodies can attach to people in control unless they prove they took reasonable steps to prevent breaches.

Land-Based Rules

Most iGaming entrepreneurs treat retail regulation as someone else’s problem. In Kenya, that approach backfires because the system is designed to link licences, permits, inspections, and tax control into one chain.

Why brick-and-mortar rules matter for iGaming operators:

1. County governments issue permits for land-based activity, which are generally valid for 12 months.
2. A licence must be displayed prominently at the business location.
3. The Authority can prescribe where gambling machines may be placed, such as distance rules from learning institutions, religious establishments, and residential areas.

Even if you plan to run solely online, you still need to budget for local operational presence and the expectations of supervision.

Digital Gambling

Kenya’s 2025 Act creates a distinct section for remote activities, with obligatory licence categories and technical control rules.

The statute lists 3 clear authorisations for online operation for:

• bookmakers;
• lotteries;
• casinos.

That categorisation matters because it pushes operators into defined boxes. If your product combines a sportsbook, an RNG casino, and promotional draws, you should carefully plan the scope of licensing.

The law defines the transaction window in a way that affects reporting logic. It starts when a player deposits funds into the gaming account and ends when they withdraw money. This wording aligns neatly with Kenya’s move towards wallet-flow taxation, where levies attach at deposit and withdrawal points rather than only at bet settlement.

A Kenyan iGaming legal model expects a working technical architecture that the Authority can monitor. The key condition is a ratified gambling control system. A remote operator must run online activity under that framework, and the Authority should not approve it unless it covers specific requirements.

The law lists the minimum pillars the system must provide:

• safety against fraud;
• digital payment services;
• protection from underage gambling;
• security for vulnerable players;
• awareness and education;
• responsible advertising;
• data protection measures.

Failure to comply with the approved system can lead to revocation and an offence. The statute instructs the Authority to establish a framework for real-time monitoring of casinos and online gambling, with access for the Communications Authority of Kenya and other government agencies.

An operator must also provide technical details that enable oversight, including server locations, registration and deregistration mechanisms, and platform access points. If the product is smartphone-based, the law goes further and requires network connectivity particulars with two links to mobile operators.

Costs, Fees, Bonds, Taxes, and Thresholds

Kenya is expensive for online brands, even if the core software stack is not premium. Budgeting must start with statutory security because the 2025 law explicitly sets these amounts.

Numbers installed by authorities:

• $775,000 of insurance security bond or bank guarantee for web gambling;
• $155,000 for casino;
• $4,000 for premises shop for online gambling.

Such a high entry barrier reshapes who can realistically hold a remote permit and weaves away unscrupulous businesses and low-funded brands.

Because licences issued under the old law remain valid until expiry, the legacy schedule still matters for financial planning and comparisons.

Common bookmaker licensing deductions comprise $3,500 plus $4,000 for a foreign brand. For casino-style activity, older public gaming instalments are reported at a much higher level. Under the 2025 Act, fees are expected to be set via regulations, so operators should treat these older charges as a baseline reference.

Kenya also puts minimum stake rules directly into the statute. A single bet in a casino machine and web gambling must be played for a minimum of KES 20.

All things considered, there is also a penalty for rule violation. A breach of the online minimum can trigger a fine of at least $23,000 or imprisonment for up to 5 years.

Kenya’s gambling charges have been adjusted through the Finance Act 2025 changes and a wallet-flow logic that taxes deposit and withdrawal activity.

Practical structure to budget for:

1. Excise duty. From 1 July 2025, the Finance Act 2025 reduced the wagering deduction to 5% (down from 15% under the prior regime).
2. Withholding tax on withdrawals. The 2025 reform introduced a 5% instalment on every cashout from a betting wallet, replacing the earlier 20% levy on net winnings.
3. Collection discipline and deadlines. KRA’s own guidance describes strict remittance timelines and penalties for late payment.

If your business model assumes flexible taxation or slow enforcement, Kenya will punish that assumption.

iGaming Licensing Process

The paperwork for a remote certificate is heavy, and the Authority expects readiness. Operators here have a typical build-out path to follow under Kenya’s current legal reality.

First of all, the law requires an application in the prescribed form, accompanied by the fees, evidence of gambling capital, and security in the form of an insurance bond or bank guarantee.

Next, it is critical to follow an operational sequence:

1. Select the correct online licence category. Your product scope should align with a bookmaker, lottery, or casino permit rather than a vague gaming label.
2. Prepare the gambling control package. The Authority expects a proposed submission system that covers security, payments, underage limits, responsible advertising, and data protection.
3. Document technical infrastructure and server locations. The submission must support real-time monitoring, including details on platforms used, server placement, registration flows, and telecom licensing.
4. Build a Kenyan operational presence. A customer care centre must exist within the country to provide consumer support and monitor issues.
5. Show corporate suitability and compliance readiness. The information schedule for “fit and proper” checks includes material such as audited statements, management information, and background disclosures, depending on the exact permit type.
6. Plan renewal early. A gambling licence is valid for 3 years, and the renewal application must be lodged at least 3 months before expiry.

If the Authority refuses a grant or renewal, it is possible to appeal within 21 days.

Operational Obligations

Many failures in Kenya come from poor planning, weak technical governance, or sloppy marketing. The law hardwires consumer protection, monitoring, and enforcement into day-to-day operations, so even a strong platform can end up non-compliant by accident.

The most common traps:

• ignoring real-time monitoring readiness (technical and reporting detail is explicitly required);
• weak customer support localisation (Kenyan client care centre is required);
• treating KRA as “only tax” instead of a monitoring partner (the Authority’s mandate includes collaboration to establish a fee compliance supervision system);
• bonus logic that drifts into prohibited inducements (the statute restricts credit-style encouragements, with only narrow allowances);
• marketing without approval (advertising of gambling activity requires Authority consent, and the law spells out prohibited public-facing enticement formats without that clearance).

Also, the Act gives inspectors strong powers to enter, inspect, seize, and demand information, with criminal exposure for obstruction.

Market Opportunities and Challenges

Kenya is commercially attractive, but its environment is not for easy money. The upside exists, yet the model imposes heavy compliance costs and tax friction on operators.

Public reporting shows that the government expects significant revenue from gambling-related levies and treats the sector as a meaningful contributor to the budget. Kenya’s state media has reported multi-billion-shilling annual gaming tax targets and collections over recent years.

The Finance Act 2025 changes were also framed to widen the fee base through wallet-flow collection (deposit and withdrawal taxation), with projections of a strong revenue jump discussed in industry coverage.

At the same time, operators should expect the blunt truth:

1. The $775,000 security bond is a gatekeeper, not a formality.
2. Real-time monitoring obligations force deeper technical exposure than many offshore models allow.
3. Tax collection now targets user cash movement, not only winnings, which can change player behaviour and product economics.
4. The Authority can revoke licences for breaches, and renewal is not automatic.

If you want a jurisdiction where compliance is just a background, Kenya is the wrong choice. If you are eager to enter a market with explicit, enforceable regulation, this destination with new rules is what to investigate.

The Main Things About Licensing in Kenya

The jurisdiction is a strict iGaming destination with a modernised legal base and a regulator designed for monitoring. Operators who plan to work openly must treat compliance as part of the product.

Key aspects of licensing in Kenya:

• The Gambling Control Act took effect on 26 August 2025 and replaced the Cap. 131, while existing permits have been kept valid until expiry.
• Online permits are split into bookmaker, lottery, and casino categories, with a mandatory control system model.
• Real-time monitoring is built into the framework, with required platform, server, and telecom disclosures.
• Online gambling requires a $775,000 security bond or bank guarantee, plus additional prescribed fees.
• The Finance Act 2025 shifted taxation towards deposit/withdrawal wallet flows, including a 5% rate that replaced prior higher levies.

If you plan to enter Kenya with a compliant online casino or sportsbook, 2WinPower can support the licensing pathway, the technical stack, and the operational setup needed to run without regulatory surprises.