This archive report was first published on 4 July 2019.
Kenya's online betting industry is set to face significant barriers to entry under a proposed gaming law that seeks to curb the growth of online betting and entry of more players.
The Gaming Bill 2019, currently before the National Assembly, proposes that online betting firms pay Sh500 million in licensing fees, deposit a Sh200 million refundable cash security, and provide proof of Sh200 million capital to sustain operations.
According to the proposed law, proprietors of companies will be required to pay Sh100 million in licensing fees, while online betting firms will also be required to provide a website platform, as well as all visual and audio communication channels, including particulars and location of servers and operator's system.
The proposed law also seeks to impose tighter checks and controls on online betting, which has become an instant hit among the youth who place stakes and receive winnings via mobile phones, helped by speed and convenience which comes with access to mobile money platforms such as M-Pesa.
Official data shows that unemployed youth spend an average Sh5,000 on betting per month, while the gaming industry in Kenya has grown rapidly over the last five years to Sh200 Billion from Sh2 Billion, employing 5,000 people.
