Kenya’s gambling industry enters final two-month countdown to new Gambling Regulatory Authority

Gambling operators in Kenya have entered the last phase of a sweeping regulatory transition, with the handover to the new Gambling Regulatory Authority under the Gambling Control Act 2025 due to be completed by the end of February 2026 – leaving companies roughly two months to align ownership, systems and compliance policies with the modernised framework.

Kenya’s gambling sector is now on a fixed timetable to complete its shift from the long-standing Betting Control and Licensing Board (BCLB) to the new Gambling Regulatory Authority (GRA), created by the Gambling Control Act 2025. The Act, assented to in August 2025 and brought into force later that month, replaces the 1966 Betting, Lotteries and Gaming Act and consolidates oversight of betting, casinos, lotteries and prize competitions under a single national watchdog. Recent coverage from African Gambit and international media confirms that the BCLB has suspended all new and renewal licence applications during the handover, with the transition to the GRA expected to be finalised by February 2026.

Under the new law, the GRA becomes an independent regulator with broad powers to license operators, enforce compliance and monitor gambling operations in real time, taking over the functions, assets and obligations of the BCLB. Operators face significantly higher entry and continuity thresholds: companies must ensure at least 30 per cent Kenyan shareholding, hold funds through local bank accounts and meet sharply increased minimum security capital requirements – KSh 100m for online gambling businesses, up from just KSh 250,000. Legal and advisory firms note that these changes will likely squeeze out under-capitalised brands and favour larger, better-resourced operators able to absorb compliance and technology costs.

Consumer protection and responsible gambling are central pillars of the new framework. The Act hard-codes restrictions on gambling advertising – including a ban on celebrity endorsements and tighter airtime controls – formalises self-exclusion mechanisms with options for temporary or permanent exclusion, and sets stricter age limits, with 21 years established as the minimum legal betting age. Operators must display responsible gambling warnings, introduce deposit and spending limits and ensure that winnings are paid within two days and non-cash prizes delivered within seven days, with non-compliance subject to fines and potential imprisonment. Parallel reforms – including a 5 per cent withholding tax on all betting wallet withdrawals and mandatory contributions from each stake to Kenya’s Social Health Insurance Fund (SHIF) and pension savings – further tighten the fiscal and social framework around gambling.

A key technical shift is the requirement for operators to integrate their platforms with central electronic monitoring systems overseen by the Kenya Revenue Authority and the Communications Authority, enabling real-time tracking of wagers and payouts and closing revenue leakages. During the remaining transition window, advisory firms are urging licence-holders to prioritise a full review of ownership structures, capital buffers, AML and KYC procedures, system integrations, responsible-gambling tools and advertising practices so that they are ready for GRA supervision from day one.

Analysts say the next two months will be decisive in determining whether Kenya’s reforms deliver on their promise of a more transparent, better-protected and investment-ready gambling market – or result in a highly concentrated industry that shuts out smaller firms. With Kenya already seen as a bellwether for regulatory innovation in Africa, regulators and operators across the continent are closely watching how the GRA’s launch and enforcement approach unfold ahead of the February 2026 deadline.