Key Regulatory Changes for Betting & iGaming Operators in Kenya 2026
Kenya’s betting and iGaming sector is undergoing significant regulatory and tax changes in 2026. The Gambling Control Act, 2025, its implementing regulations, and the Finance Act, 2026 introduce important considerations for licensing, operational compliance, responsible gambling, advertising, and tax administration. Operators must understand these developments to manage regulatory exposure and maintain compliant operations.
1. New Gambling Licensing Framework
The Gambling Control Act, 2025, established a new framework for regulating gambling activities in Kenya. The 2026 Gambling Control (Licensing) Regulations set out licensing requirements for gambling operators, including online betting businesses.
Operators should review their licence categories, application documentation, ownership and corporate information, and ongoing regulatory obligations. Businesses operating across multiple gambling verticals should assess whether separate authorisations are required for their activities.
The implementation of the licensing framework has also been subject to court proceedings. Operators should verify the latest applicable court orders and regulatory directions before making licensing decisions or relying on particular fee and capital requirements.
2. Operational Compliance and Responsible Gambling
The Gambling Control (Conduct of Gambling Operations) Regulations, 2026 establish requirements relevant to the operation of licensed gambling businesses.
Operators should review their internal controls, anti-money laundering procedures, customer identity verification, responsible gambling policies, staff training, record-keeping, and dispute resolution processes.
Practical compliance requires more than written policies. Businesses should ensure that their operational systems, employees, payment processes, and customer support procedures consistently reflect applicable regulatory requirements.
3. Advertising and Digital Platform Regulation
Betting advertisements and digital gambling platforms require careful regulatory review. The 2026 regulatory framework includes dedicated advertising regulations, making it important for operators to assess their marketing campaigns, promotional offers, sponsorship arrangements, and digital communications.
Businesses should review advertising content and approval processes against applicable restrictions, including requirements relating to responsible gambling and the protection of consumers. Operators should also assess the compliance implications of using affiliates, influencers, and third-party marketing agencies.
4. Tax Changes Affecting Betting and Gaming Operators
The Finance Act, 2026 introduced changes affecting the taxation of betting and gaming transactions, effective from 1 July 2026.
Among the key changes, the excise duty framework now applies to amounts deposited for betting and gambling purposes, rather than relying solely on wallet-based charging mechanisms. The amendments also removed the previous horse-racing exclusion from betting excise duty.
The Act further amended the treatment of withdrawals and winnings for withholding tax purposes. Operators should review how these definitions apply to player payouts and qualifying transactions, and ensure their payment systems, tax calculations, reconciliations, and returns reflect the applicable legislation.
5. Data Protection and Technology Compliance
Online betting businesses process personal information, identity documents, payment details, and customer activity records. Operators should assess their obligations under Kenya’s Data Protection Act, 2019, alongside applicable gambling regulations and licence conditions.
Compliance reviews should cover privacy notices, lawful processing, access controls, data retention, cybersecurity, incident response, and any applicable requirements concerning data hosting or regulatory access to operational records.
What Should Betting and iGaming Operators Do?
Operators should prioritise the following actions:
- Review licences, applications, and applicable regulatory directions.
- Update tax calculations and payment-system configurations.
- Strengthen customer verification and anti-money laundering controls.
- Audit advertising, promotions, and affiliate arrangements.
- Review data protection policies and technical safeguards.
- Maintain documented compliance procedures and monitor regulatory developments.
How Vivi Mwendwa & Associates Advocates Can Help
Vivi Mwendwa & Associates Advocates provides legal advisory on regulatory compliance, licensing, digital business regulation, and tax-related legal risk. We assist businesses in assessing their obligations, reviewing operational frameworks, and navigating regulatory developments affecting Kenya’s betting and iGaming sector.
Contact our team to discuss your licensing, compliance, or regulatory requirements.
