Kenya’s government is coming for the gambling industry from two directions at once: the wallet and the TV screen.
On the advertising side, new regulations proposed by the Gaming Regulatory Authority of Kenya (GRAK – formerly BCLB) would ban betting companies from using celebrities, social media influencers, or people who’ve won large sums of money in their ads.
Firms also wouldn’t be allowed to frame gambling as a way to make a living or tie it to any image of financial success. The penalty for breaking these rules is steep, with up to KES 20 million in fines, up to 20 years in prison, or both.
The motivation isn’t hard to understand. About 40.4% of Kenyans between 18 and 45 are actively betting, according to a joint report by the Central Bank of Kenya and the Kenya National Bureau of Statistics. On average, they’re spending KES 1,845 a month on it.
Kenya also has one of the highest rates of youth gambling on the continent, with an estimated 76% of young people participating. Unemployment is a major driver since when formal income is scarce, a betting app starts looking like a plan.
On the tax side, the government is tightening the screws further. Gamblers already pay a 15% excise tax on every stake they place, and now winnings will be hit with a 20% withholding tax.
Beyond that, the definition of what counts as taxable money in a betting account has been expanded to cover all funds deposited for gambling and not just specific transactions. In plain terms, more of the money flowing into these platforms is now taxable than before.
Betting companies aren’t having an easier time either. They currently pay a 15% tax on gross gaming revenue, a 30% corporate tax on profits, and a 16% income tax, all of which must be remitted daily by 1 AM.
READ: SHIF and NSSF Cuts to Make Betting Costlier for Kenyans
On top of that, the government is proposing a new licensing requirement for key staff at betting firms. Foreign employees or directors would pay KES 300,000 for a license; Kenyans would pay between KES 50,000 and KES 100,000 depending on their role.
Taken together, the strategy is fairly simple: make gambling less visible, less aspirational, and more costly for both the companies running it and the people doing it.
