The authority formally assumed regulatory responsibilities from the former Betting Control and Licensing Board (BCLB) on February 28, 2026, marking a significant shift in Kenya\u2019s gambling oversight framework <\/strong>as the new regulator moves to strengthen control of the country\u2019s rapidly expanding betting sector.<\/p>\n\n\n\n GRA Director General,\u00a0Peter Karimi<\/strong>, said officials are exploring a framework that would allow the GRA to \u201cretain or directly manage <\/strong>some of the revenue collected from betting and lottery operators\u201d instead of the funds being fully handled by the KRA.<\/p>\n\n\n\n Appearing before the National Assembly\u2019s Administration and Internal Security Committee, Karimi said the proposal forms part of a broader effort to strengthen oversight of the gambling sector and ensure the industry contributes more to economic development<\/strong> and social programmes.<\/p>\n\n\n\n Karimi, who assumed office just weeks ago, told lawmakers that the newly established regulator is transitioning from the former BCLB into a fully-fledged state corporation<\/strong> with\u00a0expanded regulatory powers. <\/p>\n\n\n\n \u201cThe first thing is to protect Kenyans and give them comfort that the industry is now under extremely tight regulation,\u201d Karimi told the committee.<\/p>\n\n\n\n He said the authority must quickly build the institutional capacity needed to regulate an industry that is expanding rapidly, particularly in the online space.<\/p>\n\n\n\n The move comes as Kenya\u2019s gambling market continues to grow, driven by mobile betting platforms, aggressive marketing and a young digital population. KRA data for the period to August 2025 shows a 117.2 per cent increase<\/strong> in excise duty collection from betting services during the 2024-2025 financial year, exceeding the target of Sh11.288bn (\u20ac75.6m).<\/p>\n\n\n\n Excise duty from betting services rose to Sh13.233bn (\u20ac88.7m) in the 2024-2025 financial year from Sh10.598bn (\u20ac71.0m) collected in the previous financial year. During the same period, Betting Tax also exceeded its target <\/strong>after reaching Sh5.70bn (\u20ac38.2m) against Sh5.495bn (\u20ac36.8m), reflecting a performance rate of 103.7 per cent and growth of 22.0 per cent.<\/p>\n\n\n\n Karimi told the committee that the sector\u2019s rapid expansion has raised concerns around consumer protection<\/strong>, tax compliance and the potential misuse of gambling platforms for illicit financial flows.<\/p>\n\n\nSurging betting revenues<\/h2>\n\n\n\n
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