This archive report was first published on 10 July 2019.
On July 10, 2019, the Betting Control and Licensing Board (BCLB) ordered Safaricom to suspend M-Pesa pay bills and SMS short codes for 27 betting firms, including SportPesa and Betin, citing expired licenses.
The regulator stated that the 27 firms had failed to meet undisclosed licensing requirements and were being vetted to determine their fitness to hold gambling permits.
This move comes weeks after the State refused to renew operating permits for 19 gambling firms and deferred eight others, affecting an industry that generates over Sh200 billion in annual sales.
Safaricom expressed concerns that the order would leave it in a difficult position, as some betting accounts had money and firms like SportPesa and Betin had secured court orders to continue operating.
The BCLB emphasized that the renewal of licenses depended on the firms' operations and directors receiving a clean bill of health in an ongoing security vetting process.
As a result, the switch-off would disable the betting firms, as the majority of gambling takes place online and through phone services like M-Pesa.
According to a July 10 letter from the BCLB to Safaricom, the regulator requested the suspension of pay bills and short codes until further notice.
