In recent years, Kenya has set an example for other countries seeking to reform the gambling sector. The adoption of a new tax policy led to a significant increase in budget revenues and also changed approaches to industry oversight. Can this experience be considered successful for all market participants—players, operators, and the state? The focus has been not only on economic outcomes but also on new standards of responsible gambling, which gives the reforms special significance.
Tax Reform and Financial Results
The main innovation introduced by Kenyan authorities was the implementation of a new taxation procedure: now, tax is levied on deposits and withdrawals, rather than on each bet or win. This decision made cash flows more transparent and increased the government’s effectiveness in combating tax evasion. According to Kenya’s Ministry of Finance, tax revenues from the sector grew by 21% over the past year compared to the previous period.
Deputy Minister of Finance Michael Kagika noted that such growth became possible thanks to the fight against shadow schemes, a reduction in illegal operations, and a shift toward transparent practices. The additional funds have provided a significant boost to the state budget and a new source of funding for important initiatives. Increased transparency has also strengthened the trust of players and partners in the domestic market, reducing risks associated with unaccounted transactions.
Interaction Between the State and New Regulators
One of the key outcomes of the reform was the creation of a strong institutional framework. The establishment of the Gaming Regulatory Authority (GRA) was a response to the evolving challenges of the sector. The GRA, together with operators and the Association of Gaming Operators of Kenya (AGOK), is implementing standards of fairness, transparency, and protection of the interests of all participants.
Collaboration between the state and business is evident not only in oversight but also in the implementation of social projects. A striking example is the construction of the Talanta Sports Stadium, partially financed by funds collected from gambling market participants. A logical question arises: is the motivation behind regulation solely the pursuit of fiscal revenues, or is the focus gradually shifting toward investment in society and infrastructure?
Against the backdrop of stricter fairness standards, players are beginning to gravitate towards platforms that truly meet regulatory requirements. External analytics help with this—for example, the monthly selection of top operators by industry portals. Users are increasingly turning to open sources to find the best offers.
While writing this article, we tried to find out from representatives of such sites how their monthly traffic has changed. The first response came from www.twinspinca.com, which features online casino reviews. They noted an increase in interest in the resource of more than 18% in recent months. According to them, users are more frequently seeking offers that provide an objective assessment of legal online casinos and help them navigate updated regulatory requirements, which take GRA standards into account.
Development of Responsible Gambling and Player Protection Initiatives
A significant part of the reforms was aimed at fostering a culture of responsible gambling. In partnership between AGOK and the state, the national Chuka Control campaign was launched, with the goal of raising awareness about the risks associated with gambling. The programs include informational materials, support hotlines, and mental health counseling.
Special attention is given to the self-exclusion system, which allows players to voluntarily restrict access to gambling services for a certain period. The state and operators are investing in promoting such practices to protect the most vulnerable groups. The development of these initiatives is intended to reduce the growth in the number of problem gamblers and increase the overall level of safety in the market.
The Industry’s Contribution to the Economy and Society
The gambling sector is playing an increasingly prominent role in Kenya’s economy. According to experts, it provides a significant share of national income annually and contributes to the creation of thousands of new jobs. Funds collected by the state are used to support education, sports projects, infrastructure development, and the implementation of social programs.
Industry representatives note that sound regulation allows for a harmonious combination of commercial benefit and social responsibility. Surveyed experts emphasize the importance of ensuring that part of the tax revenues is consistently allocated to the development of young professionals and support for sports, and not only to the financing of general budget items.
Professional Perspective on Changes and Development Prospects
Most industry leaders and representatives of the Ministry of Finance consider the reform a success. AGOK board member Joseph Kirui Limo believes that the long-term effects of integrating new standards are already evident: “The new rules make the market more stable for everyone, strengthen trust, and stimulate investment.” However, questions remain regarding the possible further tightening of regulation: with an additional increase in the tax burden, some operators may go underground, as has been observed in other African and European countries.
International practice shows that the success of such reforms depends on maintaining a balance between state control and business freedom. In a number of countries with similar reforms, there has been a decrease in illegal turnover and an increase in social support, but overly strict measures have sometimes led to market contraction and loss of budget revenues.
