The Betting Control and Licensing Board (BCLB) Kenya is gearing towards a major regulatory shakeup for the gambling sector, including a licensing fee hike which could put some smaller operators at risk.
The BCLB’s licensing shakeup is aimed at significantly raising the standards for licensed market participation.
Kenya’s BCLB previously clamped down on the use of influencers, celebrities and media outlets in promoting gambling within the state, ruling that such practices went against the Code of Conduct for Media Practices, 2025.
That was after they moved quickly in the early months of the year to shut down over fifty betting firms who had long thrived on illegal gambling operations.
Under the BCLB’s licensing shakeup, even stricter rules and regulations are planned. The BCLB, which operates under the office of the Presidency, is set to introduce a licensing fee hike for all gambling operators, a move which would require substantial capital investment.
Igaming operators typically pay just over Ksh10,000 ($77) for an application today and around Ksh400,000 to a million in licensing fees per annum, but will now be made to pay significantly higher than those sums.
Newly proposed licensing fees could run into millions
A parliamentary debate on Tuesday 22 July addressed the licensing fee hike, which will see operators required to pay the below amounts, depending on the type of licence required:
★Betting shops and online lotteries: a minimum of Ksh50 million ($387,000)
★Online operators: a minimum of Ksh200 million ($1.5 million)
★Land-based casinos: up to Ksh5 billion ($38.7 million)
“For a small-scale betting shop (muaka), we are proposing a minimum capital investment of Ksh50 million. For public gaming operators such as casinos, the proposal is to raise the requirement to Sh5 billion,” BCLB Director Peter Mbugi recently told the National Assembly’s Finance and Planning Committee.
Stricter identity checks for players, and centralised monitoring of operators will also be introduced by the regulator as part of these developments.
In the bid to ensure responsible betting, and put an end to underage gambling, all new online bettors will be required to submit a selfie photo showing their national IDs.
Stakeholders will then brace themselves for tighter monitoring efforts, aimed at improving transparency and compliance within the Kenya igaming market. Tech tools will be introduced for real-time monitoring of all igaming activities, as well as to prevent fraud.
Will small operators survive BCLB’s licensing fee hike?
There is very little to suggest firms with less capital will survive the heat, and stakeholders have suggested this move might trigger more unregulated market activities.
“This will only give way to a negative outcome. If operators are having to shell out [much more in licensing fees] the whole thing will only open the floodgates for the black market”, Job Weku, a Kenyan iGaming analyst and B2B business strategist tells iGB.
“Those locked out due to this punitive capital requirements need to just invest in URL mirroring and save on taxes as well as operational expenses.”
Improved gambling bill awaiting President’s approval
However, David Sarinke at well-respected legal firm McKay Advocates tells iGB the BCLB is in tune with the regulatory framework passed a couple of years ago in the market.
“We have reviewed the mediated version of the Gambling Control Bill 2023 and can confirm that it proposes a significantly more structured framework for the licensing and regulation of gambling activities in Kenya”, Sarinke notes.
“And some notable provisions with potential implications for operators include a tailored licensing framework, a public lottery licence, extended licence validity (from 12 to 36 months), local ownership requirements, capital adequacy requirements, mandatory security deposits and a minimum stake threshold.”
“While this bill is reflecting a clear policy shift aimed at tightening regulatory control, we understand it can bring both opportunities and challenges,” David adds.
The mediated bill has passed through both Houses of Parliament and will be forwarded to the President for assent once approved. It represents significant legislative momentum, but the precise timing for enactment remains unclear.
A major licensing shakeup is being prepared by Kenya’s BCLB. Online operators face a licensing fee hike to Ksh200 million ($1.5 million).