The deadline marks the culmination of the most significant regulatory transition Kenya’s gambling sector has seen in more than half a century, a shift NEXT.io examined in depth in its recent report, NEXT iGaming Market in Focus: Kenya, produced in partnership with Sportingtech.
Last year, the Gambling Control Act 2025 replaced a framework dating back to the 1960s, creating the Kenya Gambling Regulatory Authority (GRA), which took over from the Betting Control and Licensing Board.
In February, Peter Maina Karimi (pictured) was appointed as the new regulator’s director general to oversee the transition and the licensing regime that comes with it. It is that appointment that is now being contested.
A conflict of interest?
A constitutional petition before the High Court alleges that Karimi’s appointment 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 company at least five years earlier.
The petition points to Karimi’s previous role as CEO of mCHEZA, a licensed betting operator, and argues that this represents a conflict of interest.
The allegations are contested, the matter remains pending before the court, and there is, at present, no finding that the appointment was unlawful.
“The challenge to Peter Maina Karimi’s appointment is ultimately a question of statutory compliance,” Allan Mzungu, partner at MMS Advocates, told NEXT.io.
He also noted that it is significant that COFEK, Kenya’s independent, self-funded, non-political consumer-protection federation, has sought to participate in the proceedings, highlighting the broader public-interest and consumer-protection considerations at stake in the governance of the Authority.
NEXT.io has contacted the regulator for comment.
Regulatory uncertainty
Mzungu’s central point is that the stakes extend well beyond one appointment.
“The significance of the case lies less in the individual and more in the office. The director general is responsible for the day-to-day administration of the Gambling Regulatory Authority and plays a central role in licensing, compliance and enforcement under the new regulatory framework.
“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 said.
What gives the case its weight, he added, is the timing: a leadership challenge running in parallel with the most important licensing round in decades.
“From a legal perspective, the concurrent timing of the appointment challenge and the licence renewal process inevitably creates a degree of regulatory uncertainty.
“While there is presently no finding that the appointment was unlawful, the outcome of the proceedings could have implications beyond the office holder himself, particularly if parties seek to challenge or scrutinise regulatory decisions made during the pendency of the litigation.
“For that reason, operators, investors and other stakeholders will be watching both the court proceedings and the licensing process closely,” Mzungu said.
Increased capital requirements
More than 100 companies hold online betting licences in Kenya for the 2025/26 financial year, although sources told NEXT.io for its latest market report that only around 30 of them are meaningfully active across online betting, lotteries and digital casino products.
The market is heavily concentrated, with the three largest players, Betika, GameMania and Odibets, together accounting for nearly half of it.
Current licences expire at the end of June 2026, with all new licences to be issued under the new regulator from July.
However, key supporting regulations have yet to be approved, leaving operators without full clarity on the rules they must meet.
What is already clear, however, is that licensing fees and capital requirements have risen sharply.
“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 for the report.
“For example, 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. Global entities can often meet these requirements through their parent company; many local operators may not.
“This will likely lead to consolidation and acquisitions. And in any acquisition, particularly in Kenya, taxation must be carefully considered, as many operators may have hidden or unresolved tax liabilities,” he added.
Longer licensing period
At the same time, the new framework introduces measures that many in the industry view positively. Licences are now valid for three years, compared with just one year previously, giving operators a longer planning horizon than they have ever had.
“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,” John Mutua, CEO of the Association of Gaming Operators Kenya (AGOK), told NEXT.io for the report.
The introduction of B2B licences is also being welcomed across the ecosystem.
“By formally recognising suppliers, platform providers and certification labs, Kenya is raising the bar for the entire ecosystem,” Sportingtech CEO Tom Ustunel said.
“This creates a more transparent and accountable market, where operators can rely on properly licensed partners to ensure fairness, security and compliance.”
Open questions beyond the deadline
The most immediate challenge, however, is the approval of the supporting regulations.
In theory, the required regulations could be finalised within weeks. In practice, sources told NEXT.io that the process could extend towards the end of the year, with growing expectations that the regulator will opt for a staged or phased implementation rather than a single, immediate transition.
Two other issues continue to hang over the market. The new law introduces a requirement for foreign operators to maintain at least 30% Kenyan shareholding, although how this provision will be implemented in practice remains unclear.
Taxation is another source of uncertainty. The current regime imposes a 5% tax on deposits and a 5% tax on withdrawals, but the government’s proposed 2026 Finance Bill includes a provision to reinstate a 20% withholding tax on player winnings. If enacted, industry sources expect the measure to come into force around September 2026.
For some, that fiscal uncertainty is the real wildcard. “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,” Kresten Buch, chairman of the PawaTech Group, told NEXT.io for the report. “That said, it remains highly volatile, and future changes to taxation or regulation could quickly alter the direction again.”
Growth story and test case
For all the unanswered questions, the direction of travel is unmistakable. With an estimated 8 million monthly active players, and gross gaming revenue that NEXT.io sources believe has reached around $1bn, Kenya is one of Africa’s most closely watched markets.
For operators eyeing the opportunity, execution on the ground will matter as much as capital.
“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. That’s still the reality across many African territories,” said Nana Totoe, chief operations officer at Sportingtech.
As the June deadline passes, and the courts consider the challenge to its leadership, Kenya is emerging as both a growth story and a test case: a fast-growing, mobile-first betting market undergoing regulatory maturation, where the balance between commercial expansion, effective oversight and player protection will shape its next chapter.
Dingnews.com 25/06/2026