Kenya’s gambling operators are racing to secure licences before a June 30 deadline under a sweeping new regulatory regime now facing a legal challenge.
The deadline represents the most significant regulatory transition Kenya’s gambling sector has experienced in more than half a century, reshaping the entire industry landscape.
Last year, the Gambling Control Act 2025 replaced a framework dating back to the 1960s, establishing the Kenya Gambling Regulatory Authority to replace the Betting Control and Licensing Board.
Peter Maina Karimi was appointed in February as the new regulator’s director general, tasked with overseeing the licensing transition and the new regulatory framework.
That appointment is now being contested before the High Court through a constitutional petition alleging Karimi did not meet the eligibility requirements set out in the new law.
The Act bars anyone who has been a director, employee or shareholder of a gambling company from appointment to the regulator’s board unless they left the firm at least five years earlier.
The petition points specifically to Karimi’s previous role as CEO of licensed betting operator mCHEZA, arguing the position represents a direct conflict of interest.
The allegations remain contested, the matter is still pending before the court, and there is currently no finding that the appointment was unlawful.
“The challenge to Peter Maina Karimi’s appointment is ultimately a question of statutory compliance,” said Allan Mzungu, partner at MMS Advocates.
Mzungu also noted that COFEK, Kenya’s independent, self-funded, non-political consumer-protection federation, has sought to participate in the proceedings, highlighting broader public-interest considerations at stake.
The stakes of the legal challenge extend well beyond any single appointment, with the director general’s office playing a central role in licensing, compliance and enforcement.
“The significance of the case lies less in the individual and more in the office,” Mzungu said, pointing to the director general’s outsized influence over regulatory implementation.
“As Kenya transitions to the regime established by the Gambling Control Act, the office is expected to have substantial influence over the implementation of gambling regulation,” he added.
The concurrent timing of the legal challenge and the most important licensing round in decades adds considerable weight to an already complex situation.
“From a legal perspective, the concurrent timing of the appointment challenge and the licence renewal process inevitably creates a degree of regulatory uncertainty,” Mzungu explained.
“For that reason, operators, investors and other stakeholders will be watching both the court proceedings and the licensing process closely,” Mzungu said.
More than 100 companies hold online betting licences in Kenya for the 2025/26 financial year, though only around 30 are considered meaningfully active across online betting, lotteries and digital casino products.
The market is heavily concentrated, with Betika, GameMania and Odibets together accounting for nearly half of total market activity.
Licensing fees and capital requirements have risen sharply under the new framework, raising real concerns about which operators can afford to continue.
“From a business perspective, the Kenyan gaming space is moving towards consolidation, driven by the current regulatory changes,” tax consultant Meshack Mutuku told NEXT.io.
“An online licence, combining online casino, bookmaker and lottery in one, will require a KSh50m (€340,410) security bond, while a land-based casino will require KSh100m,” Mutuku explained, warning many local operators may struggle to comply.
On a more positive note, the new framework extends licence validity to three years, replacing the previous one-year cycle and giving operators a significantly longer planning horizon.
“The new three-year cycle allows for better planning and a clearer view of how to achieve a return on investment. It makes the system much more stable and predictable,” said John Mutua, CEO of the Association of Gaming Operators Kenya.
The introduction of formal B2B licences is also being welcomed, with Sportingtech CEO Tom Ustunel saying it creates “a more transparent and accountable market” where operators can rely on properly licensed partners.
Taxation remains a significant wildcard, with a proposed 20% withholding tax on player winnings included in the 2026 Finance Bill and expected to take effect around September if enacted.
“Kenya has gone through multiple cycles of sharp policy shifts, often followed by correction, but the market now appears to be on a more stable trajectory,” said Kresten Buch, chairman of the PawaTech Group.
With an estimated 8 million monthly active players and gross gaming revenue believed to have reached around $1bn, Kenya remains one of Africa’s most closely watched betting markets.
“It’s a people-do-business-with-people market. Relationships matter, and often it comes down to who you know and who can introduce you,” said Nana Totoe, chief operations officer at Sportingtech.
Kenya is emerging simultaneously as a growth story and a test case for regulatory maturation across Africa’s fast-expanding, mobile-first betting landscape.
