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Naomi Mutinda, Adv. May 2, 2026Gambling Regulation

The New Gambling Laws of Kenya

What local betting shop owners and punters need to know about the Gambling Regulatory Authority and new data obligations

Betting shop interior with screens

The long‑awaited Gambling Control Act, 2026 has repealed the Betting, Lotteries and Gaming Act (Cap 131). A new regulator – the Gambling Regulatory Authority (GRA) – now oversees all betting, casinos, lotteries, and online gambling. For betting shop owners in Machakos town, Athi River, and Kangundo, the law introduces stricter licensing, data reporting, and responsible gambling obligations. Punters also face new limits on deposits and mandatory tax deductions. This guide summarises the most important changes.

Effective date: The Act came into force on 1 April 2026. All existing licenses expired on 31 March 2026; operators had to re‑apply to the GRA.

Key Changes for Betting Shop Owners

  • New licensing regime: Three tiers – operator license (national), premises license (per physical shop), and game license (per type of game).
  • Data obligations: All betting transactions must be recorded in a real‑time central system accessible to the GRA. Failure to integrate systems can lead to license revocation.
  • Responsible gambling measures: Shops must display warning signs, cannot offer credit, and must self‑exclude any person who requests it.
  • Know Your Customer (KYC): All bettors must provide verified identity and phone number linked to their national ID. Anonymous betting is prohibited.
  • Tax: Betting tax increased to 15% on gross gaming revenue (previously 12.5%). Failure to remit attracts penalties.

What Punters (Bettors) Need to Know

  • Individual deposit limits: Maximum KES 200,000 per day across all platforms (unless you apply for a higher limit with proof of income).
  • Winnings above KES 10,000 are subject to a 10% withholding tax (deducted at source).
  • Age verification is mandatory – under‑25s face additional cooling‑off periods.
  • Self‑exclusion register: You can request to be banned from all licensed betting shops for a minimum of 6 months.
Enforcement: GRA inspectors have powers to enter any betting premises without notice. Fines for non‑compliance range from KES 500,000 to KES 5 million, and shop closure for repeat offences.

What About Online Betting Platforms?

Foreign betting sites must register a local office and obtain a GRA license. Payment of winnings must go through a Kenyan bank account. Unlicensed platforms are blocked by the Communications Authority.

How Musyoka & Mutinda Can Help

We assist betting shop owners with GRA license applications, compliance audits, and data protection agreements. For punters, we advise on tax disputes and self‑exclusion requests. Contact us to avoid operating illegally under the new law.