This archive report was first published on 2 July 2019.
On July 2, 2019, the Betting Control and Licensing Board (BCLB) announced that it would not be renewing the operating permits for 19 betting firms in Kenya, a move that could result in significant job losses in the Sh200 billion industry.
The decision affects a significant portion of the industry, which has grown rapidly over the last five years to Sh202.67 billion ($1.98 billion) from Sh2 billion, employing 5,000 people in the process.
The BCLB has also deferred the renewal of licenses for eight other betting firms, 13 casinos, and six lotteries, giving them a lifeline to continue operations pending the outcome of a security vetting process.
The security vetting process, which was initiated by Interior Secretary Fred Matiang'i on April 1, aims to ensure that all betting firms comply with the law, including payment of all outstanding taxes.
According to the BCLB, the renewal of licenses is dependent on the operations and directors of the firms receiving a clean bill of health in the ongoing security vetting process.
The BCLB has put in place measures aimed at regulating the availability, accessibility, and affordability of gaming platforms used by companies in betting, casinos, and lotteries.
Interior Secretary Fred Matiang'i had accused betting firms of tax evasion, claiming they owe the Kenya Revenue Authority (KRA) Sh26 billion in unpaid dues – some of which have been challenged in court.
"The focus on this sector is not to kill it. It's to ensure that the government gets a fair share of the revenue that's transacted on these platforms," said Maurice Oray, deputy commissioner for corporate policy at the Kenya Revenue Authority, on June 25.
