Key Progress Made Toward Enactment of New Gambling Laws in Kenya

Introduction

On 1st July 2025, the Mediation Committee was tasked with reconciling legislative differences on the Gambling Control Bill 2023 (the Bill),

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submitted its report and a mediated version of the Bill. This development marks a critical step forward in Kenya’s long-running efforts to modernise its gambling legal framework.

Kenya’s gambling sector is currently regulated under the Betting, Lotteries and Gaming Act 1966, which is widely regarded as outdated and ill-suited to the realities of today’s dynamic and

increasingly digital gambling environment. Efforts to reform the law began in 2016, with prior legislative attempts in 2016 and 2019 proving unsuccessful.

The Gambling Control Bill 2023, introduced in the National Assembly in November 2023 and passed in December 2023, aims to establish a comprehensive legal and regulatory framework that aligns with technological advancements, particularly in online gambling.

Following Senate amendments in October 2024, which were wholly rejected by the National Assembly, the Bill was referred to a Mediation Committee in March 2025. The Committee’s

mediated version of the Bill will now be subject to final approval by both Houses of Parliament. If enacted, the Bill will significantly reshape the gambling landscape in Kenya. You can access the

mediated version of the Bill here.

Key Highlights of the Mediated Bill

The proposed legislation introduces several provisions with notable implications for both existing and prospective operators in the gambling sector:

• Specific Licenses for Online Gambling

Operators will be able to apply for specific licenses tailored to the nature of their business, such as an online bookmaker’s license, an online lottery license, and an online casino license. Licenses will also be required for key gambling personnel.

• Introduction of Public Lottery Licenses

A new category of license introduced for lotteries intended to raise funds for charitable purposes.

• Extended License Validity

  The mediated Bill adopts the Senate’s proposal to extend the license validity period from 12 to 36 months, providing greater operational stability for licensed entities.

• Local Ownership Requirements

  Licensed operators will be required to ensure that at least 30% of their shareholding is held by Kenyan citizens.

• Capital Adequacy Requirements

  Applicants must demonstrate sufficient capital to establish and sustain gambling operations in Kenya. In practice, this is demonstrated by furnishing proof of funds in a bank account.

• Mandatory Security Deposits

Licensed operators must deposit an insurance security bond or bank guarantee to cover potential liabilities. The required deposit includes KES 100 million (approx. USD 776,000) for online gambling and public lottery operations and KES 20 million (approx. USD 156,000) for public casinos (tables and slot machines).

• Minimum Stake Threshold

The Bill prescribes a minimum stake of KES 20 (approx. USD 0.15) for any online gambling activity.

Next Steps

With the submission of the mediated version, the legislative deadlock between the National

Assembly and Senate is expected to be resolved. The Bill must now be approved by both Houses

before being presented to the President for assent. While this marks clear legislative progress,

timelines for final enactment remain uncertain.

We continue to closely monitor the Bill's progress and its potential implications for businesses and investors in Kenya’s gaming and digital entertainment sectors.

For tailored advice or assistance navigating the proposed regime, get in touch with us at sarinke@mckayadvocates.com.