Kenya’s new gambling regulator prepares tougher licensing push and explores national lottery plan

Kenya’s Gambling Regulatory Authority is preparing a stricter licensing and monitoring regime ahead of a key 2026 licensing cycle, while also moving to lay the groundwork for a possible national lottery as part of a broader overhaul of the country’s gambling framework.

Kenya’s newly established Gambling Regulatory Authority, or GRA, is signaling a more assertive regulatory phase for the market as it prepares to tighten licensing and oversight ahead of a major licensing window expected to close in June 2026. Speaking before the National Assembly’s Administration and Internal Security Committee, Director General Peter Karimi said the authority wants a more robust regime capable of supervising both land-based gambling venues and digital betting platforms.

The timing is important because the regulator is already in the middle of a rulemaking push. The GRA has opened public participation on a package of draft 2026 regulations, including rules on licensing, conduct of gambling operations, foreign-based operators, advertising, and a dedicated national lottery framework. The authority’s own March notice describes this as part of the rollout of the Gambling Control Act, 2025, which replaced the older regime and ushered in a new regulatory structure for the sector.

Karimi told lawmakers that the new regime will require stronger technological capacity, with systems able to track betting activity across physical outlets and online channels. According to The Star, the authority plans to recruit nearly 200 employees before the end of the year and invest in surveillance tools to monitor transactions and support compliance with financial reporting rules. That points to a model in which licensing is no longer treated as a once-a-year paperwork exercise, but as part of continuous supervision. This last point is an inference based on Karimi’s remarks about surveillance and monitoring.

At the same time, the regulator is also looking beyond ordinary licensing. Karimi said the development of a national lottery is central to the authority’s strategy and argued that, if structured properly, such a system could become a meaningful public-revenue tool and help fund social programmes. The GRA’s publication of draft National Lottery Regulations suggests that the idea is no longer just a policy talking point, but part of the formal regulatory architecture now being prepared for consultation.

For Kenya’s gambling sector, the message is clear: the country is moving toward a tighter and more technical regulatory environment just as operators prepare for the next licensing cycle. If the GRA follows through on both its surveillance plans and its lottery ambitions, 2026 could become a defining year in how Kenya balances market growth, compliance pressure and state control over gambling-related revenue streams. This final assessment is an inference based on the authority’s public consultation documents and Karimi’s statements to Parliament.