Kenya’s new Gambling Regulatory Authority plans licensing overhaul and explores national lottery

Kenya’s new Gambling Regulatory Authority plans licensing overhaul and explores national lottery

New oversight measures, staff recruitment and surveillance systems are planned ahead of a key licensing window as the regulator expands oversight of the sector.

Kenya.-Kenya’s new Gambling Regulatory Authority (GRA) plans to introduce a more robust licensing and monitoring regime ahead of a major licensing window expected to close in June 2026, while also exploring the development of a national lottery. The GRA formally assumed regulatory responsibilities from the former Betting Control and Licensing Board (BCLB) on February 28.

The plans come as the newly established regulator, now led by recently appointed Director General Peter Karimi, made a recent announcement that it is exploring a larger role in managing betting industry revenues currently handled by the Kenya Revenue Authority (KRA). The proposal, outlined by Karimi during a parliamentary committee hearing, forms part of broader efforts to strengthen oversight of the country’s rapidly expanding gambling sector.

To support the new oversight framework, the authority intends to recruit nearly 200 employees and invest in surveillance systems designed to monitor betting transactions and ensure compliance across the industry. “Many of these operations are online and casinos unfortunately are attractive targets for illicit activities,” said Karimi, adding that the regulator must build “top-notch surveillance” capabilities.

National lottery plans

Alongside the planned oversight measures, the authority is also exploring the development of a national lottery system, which Karimi said could become a significant source of revenue and a funding mechanism for social programmes.

He said global benchmarks show national lottery systems can generate up to two per cent of a country’s Gross Domestic Product when fully developed. “We are looking at the Kenyan lottery generating revenue that can be a financial enabler for the country and support economic and social transformation,” Karimi said.

The regulator is exploring the appointment of a national lottery operator through a competitive process that will likely require international advisory support.

The GRA plans to introduce the new licensing and monitoring framework ahead of the licensing window expected to close in June 2026, when betting operators will be required to comply with updated regulatory requirements and technological systems designed to track both land-based and online gambling activities.

Lawmakers also indicated that a proposal could be brought before Parliament allowing the authority to retain some of the funds it collects to strengthen enforcement, technology deployment and licensing activities.

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