Kenya proposes KSh2bn capital requirement for National Lottery operators
Draft March 2026 regulations from the Gambling Regulatory Authority outline stricter licensing rules, retail sales channels and compliance obligations for the country’s planned National Lottery.
Kenya.- Kenya’s new Gambling Regulatory Authority (GRA) has proposed sweeping National Lottery regulations that would introduce a KSh2bn (€13.7m) capital requirement for operators, alongside several other key provisions including a seven-year licence period, recognised retail lottery outlets and strengthened compliance requirements.
The proposals are outlined in the Gambling Control (National Lottery) Regulations, 2026, published on March 20, 2026 under the Gambling Control Act, 2025. The regulations form part of Kenya’s plans to establish a National Lottery, which has yet to be launched.
The GRA, which assumed oversight of Kenya’s gambling sector in early 2026, opened a public participation period from March 25 to April 13, after which the authority may revise the rules before finalising the framework.
If implemented, the rules would significantly raise the financial threshold for companies seeking to operate Kenya’s National Lottery while introducing a comprehensive regulatory framework governing licensing, compliance and distribution of lottery products.
Key proposed provisions include:
- KSh2bn (€13.7m) capital requirement for lottery operators
- Seven-year National Lottery licence
- Recognition of retail outlets, kiosks and agents as official lottery sales points
- Systems allowing the regulator to monitor lottery operations and financial activity
- AML, tax and data protection compliance requirements
- Responsible gambling safeguards
- Advertising restrictions for lottery marketing
Details of proposed measures
Beyond the capital requirement, applicants would need to demonstrate robust financial and operational capacity before receiving approval to run the National Lottery. Prospective operators would also be required to provide documentation confirming tax compliance, adherence to anti-money laundering regulations and registration as a data controller under Kenya’s data protection laws.
A National Lottery licence would be issued for seven years, with operators required to apply for renewal two years before the licence expires.
The draft regulations also clarify how lottery tickets could be sold across the country. They define “National Lottery outlets” as authorised locations where lottery products may be sold, including kiosks, retail shops, licensed agents and other distributor locations.
These outlets would be permitted to provide services such as ticket sales, ticket issuance and other player-related services, indicating that physical retail networks would play a central role in lottery distribution.
The proposals also include player protection measures such as identity verification requirements and restrictions preventing participation by individuals under the age of 18. Advertising provisions require lottery marketing to include responsible gambling messaging and prohibit content that is misleading or directed at minors.
