Kenya Passes Gambling Reform Law to Restructure the Industry
Kenya has enacted the Gambling Control Act, bringing significant regulatory changes to the gambling sector. The law emphasizes local ownership, stricter oversight, and enhanced consumer protections, setting the stage for a new era in the country’s gaming industry.
Key Provisions of the Gambling Control Act
The newly passed Gambling Control Act requires all licensed gambling companies to have at least 30% of their shares owned by Kenyan citizens. This change aims to increase local participation in the industry and ensure better regulatory control.
A new regulatory body will also be established, replacing the Betting, Control, and Licensing Board, to oversee the implementation of these changes. The act introduces strict penalties for unlicensed operators and sets clear guidelines for player protections, such as prohibiting underage registration and imposing betting limits for players identified as problem gamblers.
In addition, licensed operators must maintain accounts with Kenyan-registered banks, ensuring all transactions are conducted through local financial systems. The act raises the gross income tax for gambling businesses from 7.5% to 15%, with additional regional levies set by local authorities.
Challenges and Opportunities
Kenya’s gambling market faces challenges from unlicensed operators, which have traditionally dominated the sector. Many international companies also remain hesitant to enter due to stringent tax policies and regulatory uncertainties. However, the reforms are expected to create a more structured and transparent industry, encouraging compliance and discouraging illegal operations.
While the higher tax rates may deter some operators, the government argues that these changes will strengthen the industry’s contribution to Kenya’s economy and provide sustainable development opportunities.
A Growing Market in Africa
Kenya’s reforms come as the African gaming industry continues its rapid growth. Countries like Zimbabwe and Nigeria have also recognized the potential of the sector and are exploring similar measures to regulate gambling activities.
Internationally, Kenya’s approach mirrors recent regulatory changes in Brazil, where licensed operators now face a 12% tax on gross income and 15% on net winnings. By implementing these reforms, Kenya positions itself as a leader in fostering responsible gambling practices in the region.
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