By Clement Wasike
A quiet revolution is unfolding within the gaming sector in Kenya thanks to forward-thinking leadership of the Betting Control and Licensing Board (BCLB) under the leadership of its board chair, Dr Jane Mwikali. Once teeming with unregulated operators and rising addiction rates, Kenya’s gaming industry is now emerging as a model of innovation and accountability, courtesy of a fusion of advanced analytics, legislative foresight and collaborative governance.
Kenya’s gaming sector, valued at over Ksh. 88.4 billion in tax contributions over five years has long been a mixed bag of fortune and peril all simultaneously.
While generating significant revenue, the sector has also faced criticism for fuelling addiction, particularly among youth, with 84% of Kenyans aged between 18 and 24 supposedly engaging in betting activities.
Recognising these challenges, the BCLB’s leadership embarked on a mission to transform the industry from a risk into a force for sustainable growth.Central to this transformation is the Chairperson’s emphasis on data as the cornerstone of decision-making.
By harnessing real-time analytics, the Board now monitors over 80% of gambling activities conducted online, identifying illegal operators and high-risk behavioural patterns with unprecedented precision. The BCLB’s adoption of cutting-edge technology has been a game-changer. In 2024, the Board unveiled a centralised digital platform capable of tracking transactions across licensed operators, flagging anomalies such as irregular betting spikes or underage participation.
This system, funded partly by a Ksh. 256 million revenue surplus integrates with mobile money services like M-Pesa in an environment where 85% of bets are placed via smartphones. By getting all transactions to flow through locally registered financial institutions, the Board has curtailed money laundering and ensured transparency, in the wake, aligning with global Anti-Money Laundering (AML) standards.
Meanwhile, the passage of the Gambling Control Act (2023) marked a watershed moment for Kenya’s gaming sector. Spearheaded by the BCLB, the law introduced stringent ownership requirements (30% local equity), raised operator taxes to 15% of gross income, and established a dedicated regulatory authority to replace the Board’s outdated structures.
These reforms, rooted in data from cross-jurisdictional studies, aim to foster local entrepreneurship while deterring exploitative practices. Notably, the Act enforces betting limits for vulnerable users while banning high-risk games, some capable ensnaring minors through algorithmically engineered addiction loops.
The Board’s strategy extends beyond regulation. By partnering with the Kenya Revenue Authority (KRA) and Communications Authority, the BCLB has created a synergistic enforcement framework that is yielding palpable results. For instance, joint operations in 2024 shut down a dozen illegal online casinos and suspended three broadcasters promoting unlicensed betting campaigns.
Additionally, the Board collaborates with mental health organisations to fund counselling services through a National Gambling Harm Prevention Fund that is financed by levies from operators in a model inspired by Australia’s harm reduction models.
Data analytics have also reshaped public outreach. Using insights from GeoPoll’s surveys, which revealed that one-third of daily bettors exhibit addictive behaviours, the BCLB launched targeted campaigns on social media and community radio. These initiatives emphasise financial literacy and feature testimonials from recovering addicts thus humanising the risks of gambling. Meanwhile, licensed platforms now embed self-exclusion tools and deposit limits, reducing compulsive participation by 22% since 2023.
Still, reforming BCLB is work in progress. The Board’s plea for increased funding highlighted during parliamentary hearings in August 2024 reveals gaps in technological scalability and staff training. Moreover, the rise of AI-driven gambling content, as seen in global markets, poses new ethical dilemmas Kenya should take a moment to overcome.
Yet, the BCLB’s roadmap is clear. Plans to integrate 5G and blockchain technology aim to enhance transaction traceability, while proposals for a National Lottery promise to redirect gambling revenues into public infrastructure. Currently, the gaming sector foresees a deeper fusion of innovation and integrity upon whose integration would heighten Kenya’s potential to inspire regulatory reforms in the gaming sector across Africa.
Kenya’s journey offers a good example of balancing economic ambition with social stewardship. By marrying data acuity with legislative endeavours, the BCLB has curbed predatory practices by miles and repositioned gaming by drowning many downsides it is normally associated with. As other nations grapple with similar challenges, Kenya’s model, which is a blend of technological tenacity and empathetic governance, stands as a shining example of what’s possible when leadership dares to transform risk into opportunity.
Wasike is a former banker turned social critic and political commentator.
