This archive report was first published on 11 July 2019.
On July 10, Kenya's Betting Control and Licensing Board issued a directive to telcos to shut down the paybill numbers and short codes of 27 betting companies whose licenses are yet to be renewed.
The list of affected companies includes SportPesa, Betin, Betway, and 23 others, including Betpawa, Premierbet, Lucky 2 U, and 1XBet.
The directive, signed by BCLB acting Director Liti Wambua, effectively seeks to shut down a multibillion-shilling industry that has been on a roll.
The betting industry in Kenya depends almost entirely on mobile money transactions by gamblers, with at least 12 million people having wallets for the betting companies.
On Wednesday, Safaricom, through TripleOKLaw Advocates, wrote to BCLB, seeking clarifications with respect to the mechanisms for compliance with the order.
The telco argued that depositors should not be denied access to their money despite any regulatory action against the licensed entity.
Instead, it wants to be allowed to block additional deposits to the gaming wallets while allowing gamers to withdraw their money.
The move to shut down the gaming companies was also driven by money laundering claims that have rocked the financial sector.
Wednesday's directive was the culmination of threats and actions by the government against betting companies, which had been given tough conditions to meet before getting their new licenses.
