NAIROBI, KENYA – Kenya's burgeoning gaming and betting industry is navigating a pivotal transformation, marked by the introduction of a stringent new regulatory framework and a concerted push by operators for more responsible gaming practices. The enactment of the Gambling Control Act, 2025, which was signed into law on August 20, 2025, signals the most significant overhaul of the sector since 1966, replacing the Betting, Lotteries and Gaming Act and establishing a new, more powerful regulator.

This legislative shift comes as the Association of Gaming Operators in Kenya (AGOK) intensifies its efforts to address the social costs of gambling, including rising addiction rates, particularly among the nation's youth. The industry's move towards greater accountability is unfolding against a backdrop of its substantial economic contribution, creating a complex balancing act for policymakers, operators, and the public.

The New Sheriff in Town: The Gambling Regulatory Authority (GRA)

At the heart of the new legislation is the establishment of the Gambling Regulatory Authority (GRA), which replaces the long-standing Betting Control and Licensing Board (BCLB). According to a notice from the BCLB dated October 2, 2025, a formal transition is underway and is expected to be completed by the end of February 2026. During this period, the BCLB has suspended the processing of new and renewed annual licenses, although existing licenses remain valid until their expiry.

In an exclusive interview with SiGMA World, the acting Director General of the GRA, Peter Mbugi, described the new act as a "historic milestone." Mbugi stated that the immediate priority is a smooth and structured transition. A key focus for the new authority will be the integration of technology, including artificial intelligence and data analytics, to monitor gambling transactions in real-time. This, Mbugi explained, will enhance transparency, improve tax collection, and strengthen regulatory oversight.

The Gambling Control Act, 2025, introduces several key changes intended to reshape the industry. These include stricter licensing requirements, mandatory consumer protection measures such as self-exclusion programs, and firm limits on advertising. The act also imposes a 15% gaming tax on gross gambling revenue.

Operators on the Offensive: The Push for Responsible Gaming

Anticipating and aligning with the new regulatory direction, the Association of Gaming Operators in Kenya (AGOK) has been proactive. In collaboration with the outgoing BCLB, AGOK has launched several initiatives aimed at promoting safer gambling. These include the introduction of player protection tools like time-out features, betting and deposit limits, and real-time alerts.

A flagship initiative is the 'Chuka Control' campaign, a nationwide public awareness program launched in May 2025 to educate Kenyans on the risks of unchecked gambling. Speaking at the launch, BCLB Chairperson Dr. Jane Mwikali Makau called the initiative a "national movement to combat the risks of unchecked gambling." The campaign includes a toll-free helpline and a support call centre to provide immediate assistance to those struggling with addiction, established in partnership with the Ministry of Health's Counselling Psychology and Addiction Services Board. AGOK Chairman Sasa Krneta affirmed the industry's commitment, stating, "We are proud to stand alongside BCLB in this vital effort." However, specific data on the campaign's reach and impact remains under review. FURTHER INVESTIGATION REQUIRED.

The Economic and Social Stakes

The regulatory overhaul is taking place within a sector of significant economic importance. According to industry sources, the regulated gaming sector directly employs over 10,000 Kenyans and supports more than 500,000 livelihoods indirectly. Projections by Statista indicate that Kenya's gambling market could generate approximately US$831.80 million in revenue by 2025, with a forecast to reach US$1.03 billion by 2029.

However, this economic boom is shadowed by profound social concerns. Studies have highlighted the growing issue of gambling addiction. A 2024 study on university students in Nairobi noted that an estimated 10-15% of gamblers in the city showed signs of compulsive gambling. Another study in 2025 among students at Kisii University found that problem gambling was high among male respondents (31.57%) and was significantly predicted by low socio-economic status and stress. The Ministry of Health has expressed deep concern over the rise in gambling addiction, particularly among young people, linking it to financial distress, deteriorating mental health, and even suicide.

The new Gambling Control Act, 2025, and the proactive measures by AGOK represent a critical juncture for Kenya. The challenge for the new Gambling Regulatory Authority will be to enforce the new rules effectively, ensuring they protect vulnerable Kenyans without stifling a significant economic sector. For operators, the focus will be on demonstrating a genuine commitment to the responsible gaming principles they have begun to champion. The outcome of this new chapter will have lasting implications for the economy and public health across Kenya and potentially serve as a regulatory model for the wider East Africa region.