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Kenya Betting Regulation News: 2026 Updates & Changes
Sologe June 8, 2026
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Quick Summary
Quick Summary: Kenya’s betting industry has undergone major regulatory changes in 2025-2026, including the Gambling Control Act 2025, which repealed the 1966 Betting, Lotteries and Gaming Act. The Finance Act 2025 introduced a controversial 5% tax on all betting withdrawals and deposits, replacing the previous 20% tax on winnings. The Betting Control and Licensing Board (BCLB) has also released strict advertising guidelines and new licensing requirements, while Parliament continues to debate match-fixing legislation.
Kenya’s gambling industry is experiencing its most dramatic transformation in decades. The regulatory landscape that operators and bettors navigated for nearly 60 years has been completely overhauled.
If you’re an operator, bettor, or industry stakeholder, understanding these changes isn’t optional anymore. The new rules affect everything from how much tax you’ll pay to what advertisements you can run.
The Gambling Control Act 2025: A Complete Overhaul
On August 20, 2025, Kenya officially repealed the Betting, Lotteries and Gaming Act (Cap 131), which had governed the industry since 1966. The Gambling Control Act 2025 took its place, modernizing regulation across betting, lotteries, gaming, and prize competitions.
Here’s what changed fundamentally. The new law establishes a uniform 15% tax on Gross Gaming Revenue (GGR) across all gaming categories. Payment deadlines are now standardized to the 20th day of the month following collection.
But the Act also includes a continuity clause that retains tax provisions from the repealed legislation until new measures are fully enacted. This created some initial confusion in the transition period.
Finance Act 2025: The Tax Shift That Hit Casual Bettors
The Finance Act 2025 introduced the most controversial change: a 5% tax on all betting deposits and withdrawals. This replaced the previous system where winners paid 15% to 20% of their winnings.
Here’s why this matters. Under the old regime, if you deposited KSh 1,000, placed a bet, and lost, you paid nothing in tax. Now? The Kenya Revenue Authority (KRA) deducts 5% on the withdrawal, whether it represents profit or just your original stake.
The Parliamentary Budget Office projects this change could nearly double government revenue from approximately $35 million to about $74 million in the 2025/26 fiscal year. With collection now automatic through the KRA system, the projected rise from about KSh 5.4 billion to KSh 11.4 billion seems achievable.
But casual bettors are getting hit hardest. Industry observers note that the wallet-flow taxation system means even small-scale players lose money on every transaction cycle.
Tax Type | Rate | Applies To | Status |
|---|---|---|---|
Gross Gaming Revenue (GGR) | 15% | Operators | Active (Gambling Control Act 2025) |
Withdrawal Tax | 5% | All bettors | Active (Finance Act 2025) |
Deposit Tax | 5% | All bettors | Active (Finance Act 2025) |
Excise Duty on Stakes | 5% | Betting activities | Active (Finance Act 2023) |
Withholding Tax on Winnings | 5% | Winners (old system) | Replaced by 5% withdrawal tax |
BCLB's New Advertising Guidelines: What's Banned
On April 29, 2025, the Betting Control and Licensing Board (BCLB) suspended all gambling advertisements across all media platforms for 30 days. The pause allowed regulators to craft comprehensive new guidelines.
The new rules, released in collaboration with the Communications Authority, Kenya Revenue Authority, Media Council of Kenya, KFCB, and the DCI, are strict. All operators must now seek approval from BCLB and classification from KFCB before publishing any advertisement across TV, radio, digital, social media, or print.
What’s explicitly banned? Celebrity endorsements, glamorization of betting, misleading content, roadshows, influencer endorsements, and unregulated ads. The guidelines also mandate responsible gambling messaging and protection of minors and vulnerable populations.
Licensing Overhaul and Security Requirements
The BCLB, established in 1966, is targeting a comprehensive licensing overhaul. Reports indicate the board is implementing tougher licensing rules, including a significant security fee as part of its licensing overhaul.
This represents a substantial barrier to entry for smaller operators. The move appears designed to consolidate the market and ensure only well-capitalized, compliant operators remain active.
Operators must now navigate multiple compliance requirements, including tax registration with KRA, adherence to advertising guidelines, responsible gambling protocols, and ongoing reporting obligations.
Track Regulation-Ready Vendors With Sologe
Kenya betting regulation news matters for companies that need to follow licensing rules, payment requirements, reporting standards, and market changes. Sologe can be used by iGaming businesses to discover suppliers that support regulated operations. Its marketplace includes categories linked to software, sports betting platforms, payments, analytics, affiliate tools, marketing, licensing-related services, and business support, giving companies a way to review vendors as rules and market conditions change.
Sologe helps businesses react to market and regulation changes:
- find suppliers across software, payments, analytics, and support services
- review business-side providers before entering a new market
- connect with companies that understand iGaming operations
- present your services to operators and other B2B buyers
Get in touch with Sologe to find regulation-ready iGaming vendors, compare business-side solutions, or list your company for industry buyers.
What's Next: Pending Legislation and Future Outlook
Kenya’s Parliament continues to refine gambling legislation. In July 2025, the National Assembly debated the mediated version of the Gambling Control Bill (National Assembly Bill No. 70 of 2023), which eventually became the Gambling Control Act 2025.
More recently, in March 2026, the Sports (Amendment) Bill, 2026 was introduced to criminalize match-fixing and strengthen sports integrity institutions. This reflects growing concern about gambling’s impact on competitive sports.
Industry analysts note that Kenya’s gambling sector is at a crossroads. While macroeconomic conditions remain relatively stable, regulatory pressure is intense.
Frequently Asked Questions
What is the current tax rate on betting withdrawals in Kenya?
The Finance Act 2025 imposes a 5% tax on all betting and gaming withdrawals. This applies whether the withdrawal represents winnings or just the return of your original stake. The Kenya Revenue Authority automatically deducts this tax.
When did the Gambling Control Act 2025 come into effect?
The Gambling Control Act 2025 became effective on August 20, 2025, officially repealing the Betting, Lotteries and Gaming Act (Cap 131) that had governed the industry since 1966.
Can gambling operators use celebrity endorsements in Kenya?
No. The BCLB’s new advertising guidelines, released in 2025, explicitly prohibit celebrity endorsements, influencer marketing, and glamorization of betting. All advertisements must receive BCLB approval and KFCB classification before publication.
What is the Gross Gaming Revenue tax rate for operators?
The Gambling Control Act 2025 established a uniform 15% tax on Gross Gaming Revenue (GGR) across all gaming categories, including betting, lotteries, gaming, and prize competitions. Payment is due by the 20th day of the month following collection.
How much does a gambling license cost in Kenya now?
Licensing costs vary by category. Recent updates to the BCLB’s licensing requirements include security fees as part of its licensing overhaul. Other fees and requirements apply depending on the specific license type. Check the official BCLB website for current fee schedules.
Does the 5% withdrawal tax replace the old winnings tax?
Yes. The Finance Act 2025’s 5% withdrawal tax replaced the previous system where winners paid 15% to 20% withholding tax on their winnings. The new system taxes all withdrawals, not just winnings, which has generated significant controversy.
Who regulates gambling advertising in Kenya?
The Betting Control and Licensing Board (BCLB) regulates gambling advertising, working in collaboration with the Communications Authority, Kenya Revenue Authority, Media Council of Kenya, Kenya Film Classification Board (KFCB), and the Directorate of Criminal Investigations (DCI).
Conclusion
Kenya’s betting regulation landscape has fundamentally changed. The Gambling Control Act 2025, Finance Act 2025, and BCLB’s advertising guidelines create a more restrictive but potentially more sustainable industry framework.
For operators, compliance isn’t optional. The combination of high licensing fees, strict advertising rules, and multiple tax obligations means only well-capitalized, professional operations will thrive.
Stay informed about regulatory updates by monitoring official BCLB announcements and consulting with legal professionals who specialize in Kenya’s gambling laws. The regulatory environment continues to evolve, and proactive compliance is your best protection.
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