Kenya Tightens Gambling Rules Amid Concerns of Potential Tax Evasion

Kenya’s gambling regulator, the Betting Control and Licensing Board (BCLB), has initiated a multi-agency effort to revamp the betting industry’s operational guidelines.

Kenya Announces New Gambling Regulation Team

The regulator wants to have more control over advertising, underage participation, and gambling hours. According to the BCLB, the new team tasked with this is comprised of representatives from eight government agencies, such as the Ministry of Interior and National Administration, the Directorate of Criminal Investigations (DCI), and others.

The upcoming regulations are anticipated to restrict betting activities near schools, set limits on gambling hours, and establish eligibility criteria that individuals must meet before participating. They also come following an increasing concern among lawmakers about possible tax evasion by betting operators. Legislators stated last week that some companies might be rigging betting outcomes to understate winnings and, in turn, lower their tax liabilities.

According to data submitted to the committee by the Kenya Revenue Authority (KRA), the government collected 19.6 billion Kenyan shillings ($150 million) in excise and income taxes from the gambling sector during the 2024/25 fiscal year. This is an increase of 2.53 billion shillings (around $21 million) compared to the previous year. Molo MP Kimani Kuria noted this increase but posed the question as to why the withholding tax on wins continues to reduce despite betting increasing in activity over the past two years.

It’s not the first time that the country has cracked down on the gambling industry. Just recently, Kenyan authorities gave broadcasters a two-week ultimatum to significantly decrease their betting-related content. Failure to do so could result in losing their broadcasting license. In addition, there is currently a 30-day ban on all forms of gambling advertising across every media platform, including TV, radio, social media, and so on. 

Officials Talk on the Issues

According to BCLB Chairperson Dr Jane Makau, betting is addictive, and the country must review its guidelines, hence the creation of the multi-agency regulatory team. Makau further emphasized the need to raise community awareness about the impacts of betting, stressing that individuals should only wager amounts they can afford to lose. He noted a growing trend of people using their hard-earned income for gambling, leading to increased debt and, in some cases, depression.

However, it seems that the Kenyan gambling industry supports these efforts by the government. According to Sasa Krneta, chairperson of the Association of Gambling Operators of Kenya, companies promote responsible gambling and want clients to bet only on what they can afford to lose. Krneta also said that betting operators in the country are willing to do everything to ensure that there is compliance with the new rulings.