Accurate as of 17 October 2026. Kenya rewrote its gambling rulebook in under a year. There is a new law, a new regulator, five sets of regulations, two Finance Acts and a court case that is still open. Many guides online mix the old rules with the new ones. This page sets out what is in force, what is suspended and what is still disputed, with a link to the source for each point. It is written for operators, affiliates and players. 18+ only.
Kenya betting rules at a glance
| Area | Current position | Status |
|---|---|---|
| Main law | Gambling Control Act, 2025 (replaced the Betting, Lotteries and Gaming Act) | In force |
| Regulator | Gambling Regulatory Authority (GRA), which replaced the BCLB | In force |
| Licensing rules | Gambling Control (Licensing) Regulations, 2026 (Legal Notice 111) | In force, but challenged in court |
| New licence fees and capital requirements | Collectable since 21 August 2026, subject to refund if the court strikes them down | Disputed |
| Excise duty | 5% on amounts deposited for betting or gaming | In force |
| Withholding tax | 20% on winnings as defined in the Finance Act 2026, plus tax on withdrawals | In force; scope debated |
The law and the regulator
The Gambling Control Act, 2025 now governs betting, casinos, lotteries and prize competitions in Kenya. It moved licensing from the old Betting Control and Licensing Board to the Gambling Regulatory Authority. The GRA licenses operators, approves advertising and runs the national self-exclusion process.
Five sets of regulations put the Act into practice. They cover licensing, foreign-based operators, the conduct of gambling operations, advertising and the Gambling Appeals Tribunal. The CMS expert guide lists them.
Who needs a licence, and what it costs
Anyone who runs, sells or promotes online gambling to people in Kenya needs a GRA licence. The three online categories are bookmaker, casino and lottery. A foreign-based operator must register in Kenya and have a physical address in the country before it can apply.
The fees gazetted in Legal Notice 111 are far higher than those in the March 2026 draft. Tech-ish reported these figures for an online bookmaker:
- Application fee: KES 5 million
- Licence fee: KES 50 million, with a one-year licence term
- Annual operating fee: KES 5 million
- Minimum gambling capital: KES 100 million
- Advertising levy: 6%
Licensees must also connect to the KRA tax system and the GRA's monitoring system before they start trading. Player data must generally be stored on servers in Kenya. For a full breakdown of licence costs, see our guide to what a Kenyan sportsbook licence costs under the GRA.
The court case: what is suspended and what is not
The licensing regulations are being challenged in Judicial Review E251 of 2026, before Justice William Musyoka at the High Court:
- 20 July 2026: the court suspended the whole set of licensing regulations.
- 7 August 2026: the suspension was narrowed to the new fees and capital requirements. The rest of the regulations took effect.
- 21 August 2026: the GRA was allowed to collect the new fees, subject to refunding them if a later ruling finds them unlawful. The Authority told the court that 246 licence applications had been waiting for this.
- 2 October 2026: the expected judgment was not delivered. The matter was listed for mention on 12 October, according to iGaming Afrika.
When we checked on 17 October, we could not find a public report of what happened at the 12 October mention. Until judgment is delivered, operators should treat the fees as payable but potentially refundable.
Betting tax in Kenya: what operators and players pay
Tax is where most guides go wrong. They mix the stake-based duty that ended in 2025 with the rules that apply now. Here is the position after the Finance Act, 2026, which was assented on 23 June 2026, as summarised in the EY tax alert.
Excise duty: 5% on deposits
Excise duty stays at 5%. It is no longer tied to a betting wallet. It now applies to any amount deposited for betting or gaming, including chips, tokens and credits. Horse racing, which used to be excluded, is now included. This continues the change made by the Finance Act 2025, which replaced the old stake-based duty with a charge on deposits.
Withholding tax on withdrawals
The 5% withholding tax on withdrawals, introduced in 2025, remains. The Finance Act 2026 changed when it is charged. The tax point is now the moment money is paid or credited to the player's account, not the moment the player withdraws it. This stops players deferring tax by re-staking their winnings before withdrawing.
20% withholding tax on winnings
The Act brings back a 20% withholding tax on winnings for residents and non-residents. Sources disagree on how far it reaches:
- The EY reading is that "winnings" means a payout from a lottery or prize competition run by a licensee.
- Some press reports describe it as a tax on all betting winnings that replaces the withdrawal tax.
The difference matters. Under the broad reading, a KES 100,000 sports betting win would pay out KES 80,000. Under the narrow reading, it would face only the withdrawal tax. Operators should confirm with the Kenya Revenue Authority or a tax adviser how they withhold, and players should check their payout statements.
Payments: M-Pesa, Paybills and PSP approval
Most Kenyans deposit and withdraw through mobile money, so payment rules affect every operator. Under the Conduct of Gambling Operations Regulations (Legal Notice 112), a payment service provider needs GRA approval before it can process gambling payments, and the GRA can withdraw that approval. That makes M-Pesa Paybill access a tool of enforcement as well as a business service.
This has already come up in court. Operators reported warnings that Paybills could be cut off on 24 September, and the judge said the existing orders were meant to prevent that. For how a neighbouring market routes betting payments through a central gateway, see our explainer on Uganda's central payment gateway.
Player protection rules
- Self-exclusion: every licensed site must offer a way to take a break. The GRA publishes its self-exclusion process.
- Family exclusion: a family member or other interested party can apply to have someone barred when their gambling causes, or risks causing, serious financial hardship. The gambler can contest the application, as Techweez reported.
- Operator suspension: operators can suspend an account they suspect shows compulsive gambling, and must report it to the GRA within 24 hours.
- Advertising: gambling adverts fall under the Advertising Regulations, 2026, and are subject to a 6% advertising levy.
Gambling is for adults only. If betting is affecting your money or relationships, see our responsible gambling page.
What to watch next
- Judgment in JR E251 of 2026. It will decide whether the new fees and capital requirements stand.
- KRA guidance on the 20% winnings tax. It should settle whether the tax covers sports betting or only lotteries and prize competitions.
- GRA approvals of payment service providers. These will show how strictly Legal Notice 112 is enforced on mobile money.
We will update this page when any of these change. For a wider view of the market, start at our Kenya hub.
Related reading
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This article is for information, not legal or tax advice. Rules last checked on 17 October 2026.
