Kenya outpaces East African neighbours with three-year gambling licences

Kenya outpaces East African neighbours with three-year gambling licences

New extended gambling licences are boosting investor confidence, expanding the market and giving operators stability to grow across the region.

Kenya.- Kenya is rapidly transforming its gambling industry, leaving regional competitors behind with the rollout of default three-year licences for betting and gaming operators. The shift to multi-year regulatory certainty is reshaping the East African betting landscape and creating a framework that allows companies to consolidate locally and prepare for growth across the continent.

For years, operators in Kenya faced one-year approvals that left little room for planning or expansion. The new three-year default period signals the government’s intent to position the country as a regional hub for betting and gaming. In contrast, Nigeria and Uganda still operate under short-term licences, which can deter foreign investors.

Signed into law by President William Ruto on August 7, 2025, and effective from August 26, the reform replaces the uncertainty of annual renewals with a framework already drawing attention from industry leaders. Experts say the move could redefine Kenya’s gambling sector.

Law firm Anyanzwa J.S & Advocates said that Kenya’s new three-year gambling licence has the potential to transform the industry.

“Kenya’s adoption of a three-year gambling licence positions the country as a strategic hub for operators seeking to capitalise on Africa’s booming betting market. The stability allows operators to invest in technology, responsible gambling tools and infrastructure in ways that were impossible under short-term licences”, said the firm.

Their insight underscores how multi-year licences can reshape operational strategy and attract long-term investment.

Market surge in gambling sector

The industry is projected to generate nearly KSh831m (€772m) in 2025, according to an industry report, reflecting the rapid rise of betting in East Africa. Mobile-first betting dominates, supported by M-Pesa payments, which allow fast, secure transactions for millions of users.

More than 100 licensed betting sites now operate in Kenya, with major brands such as SportPesa and Betika expanding regionally, highlighting the country’s appeal to investors and its growing influence in the East African betting landscape. With a projected 5.47 per cent annual growth rate, the market continues to attract significant interest from local and international investors.

The Kenya Revenue Authority collected a record KSh13.2bn (€87.1m) in taxes from betting and gaming during the 2024/25 financial year, according to a Nyakundi Report, demonstrating the government’s immediate gains from a regulated market.

Betting activity also continues to expand: the total amount staked rose 17.04 per cent to KSh75.18bn (€496.2m) in the nine months to March 2025, underscoring the advantages of longer licence certainty.

The multi-year licensing framework gives operators clear, stable rules to plan investments, improve compliance and strengthen responsible gambling, reinforcing Kenya’s position as a leading betting hub in East Africa.

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