Kenya Plans New Licensing Rules to Regulate Gambling Operators

Kenya’s gambling industry is set for sweeping changes as lawmakers review new regulations that would require all operators to apply for fresh licences.

The proposals, now under scrutiny by the National Assembly’s Committee on Delegated Legislation, aim to end automatic renewals and introduce stricter oversight through the newly formed Gambling Regulatory Authority (GRA). According to reports from local media, The Star, officials said the reforms are designed to address the social harms linked to betting while reshaping a sector worth billions of shillings.

Appearing before the committee chaired by Samuel Chepkonga, GRA representatives explained that the new framework would separate licences for online bookmakers, lotteries, and casinos.

The officials also highlighted the online game Aviator, which has grown in popularity, as requiring closer monitoring. Concerns were raised about its use of artificial intelligence and the risk that it could fuel addictive behavior among players.

“The gambling sector contributes about Sh14 billion a year to our revenue, which is a huge contribution. However, we need to regulate this industry in a manner that is not going to harm our families. We have cases where families are bankrupt and properties auctioned because of addiction,” he told the committee,” stated Geoffrey Ruku, the Public Service Cabinet Secretary who led the GRA officials to the parliament.

Lawmakers sound alarm on “fit and proper” test for licence applicants

During the review of the draft gambling regulations, committee members raised concerns about provisions they felt were vague and open to misuse.

Kilgoris MP Julius Sunkuli questioned the proposed “fit and proper” test for licence applicants, warning that without clear standards, decisions could be left to the discretion of the authority. “If you are not specific, then it means you have opened it up for the authority to determine what constitutes due diligence. You can even make law behind closed doors,” he cautioned.

Other lawmakers highlighted the risk of setting capital requirements too high, arguing that such thresholds could block genuine investors from entering the market.

They also pressed for stronger enforcement of advertising rules, including the proposed ban on gambling adverts between 10 p.m. and 6 a.m., and called for safeguards against companies disguising gambling products as investment schemes.

Concerns about protecting minors featured a lot. Kiambu Town MP John Waithaka asked how underage gambling would be prevented and whether licence fees would be uniform across counties.

Kathiani MP Robert Mbui also challenged the requirement for applicants to provide audited accounts for the previous two years, noting that this could unfairly exclude new businesses. “Are you closing out any possibility for a person to start a business in this sector? If they have not been operating in this line of business, they will not have audited accounts for two years. Without them, they do not qualify,” he stated.

The committee is expected to continue its deliberations later this week. Once the regulations take effect, the GRA plans to roll out a central monitoring system to detect signs of addiction and trigger interventions such as suspending accounts or referring players to counselling.

Officials acknowledged that the authority is still operating with limited staff but insisted the reforms are vital to ensure accountability, protect consumers, and guide the sector’s growth responsibly.

Kenya Plans New Licensing Rules to Regulate Gambling Operators

Lawmakers sound alarm on “fit and proper” test for licence applicants

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