Kenya is quickly emerging as one of Africa’s most dynamic iGaming markets. With a projected market size of $2.1 billion GGR by 2026, a mobile-first user base, and an increasingly clear regulatory framework, Kenya presents vast opportunities and specific operational demands.
In the “Where Is My Money?” podcast, Peaky Ads CEO Vasilii Gamov and Olalekan Joseph Oyekunle (iGaming Expert) share an in-depth analysis of the Kenyan iGaming market. Here’s a structured recap of their expert discussion, with added commentary, figures, and insights.
Why does Kenya stand out among iGaming GEOs?
Kenya’s digital infrastructure and youth-driven audience set it apart in Africa’s iGaming landscape. Over 88% of bettors use smartphones, and over 70% of all transactions are processed via M-Pesa, a dominant mobile money platform.
Why Kenya stands out
- Youthful demographic: Most players are between 18 and 35.
- Tech-savvy users: Internet access rate is 40.8% (mainly via smartphones).
- Market forecast: By 2029, Kenya’s market is expected to reach $1.03 billion GGR and 1.6 million active players. Sports betting alone is projected to hit $159.2 million.
Kenya’s market is distinguished by a young, tech-driven audience that prefers mobile betting over traditional desktop platforms,
Olalekan Joseph OyekunleiGaming ExpertRegulation for iGaming: structured but demanding
Kenya operates one of Africa’s most transparent yet demanding regulatory systems, managed by the Betting Control and Licensing Board (BCLB).
To operate legally in Kenya, companies must:
- Register a local entity — this applies to all companies, even if they are foreign.
- Submit a detailed business plan that complies with BCLB standards.
- Apply for separate sports betting and online casino licenses (if planning to run both niches).
Licensing Requirement Details Local company registration Mandatory for foreign and domestic operators Licensing authority Betting Control and Licensing Board (BCLB) Estimated licensing fee $20,000–$25,000 (case-specific) Online-only licenses available Yes, including casino and sports betting
You don’t need a retail casino to launch online. Just include that intent in your application,
Taxation for iGaming in Kenya: deep dive
Tax policy in Kenya is fixed and applies primarily to players:
| Tax Type | Rate | Applied To |
| Betting tax | 7.5% | Total wager amount |
| Winnings tax | 20% | Payouts to players |
It is not the operator that puts in the most — it’s the gambler. There are taxes taken at both ends,
Player behavior: volume over value
Kenyan players wager little but often. With relatively low wages, the average bet size is small, but the number of wagers is high.
Typical player profile
- Daily bet size: $1–$3.
- Monthly betting volume: 15 bets per user.
- Income: $250–$300/month (urban average).
- Live betting preference: 60% of players favor real-time betting.
Despite the small bet sizes, operators can still achieve profitability through volume-driven acquisition and clever retention tactics.
Don’t expect high ARPU like in Europe. Focus on scale, loyalty, and segmentation,
There is also a VIP tier of players — typically business owners or entrepreneurs — who bet between $10 and $15 daily and respond well to personal outreach and exclusive offers.
Bonuses & retention: what players expect
A bonus strategy is everything in a market with high competition and low loyalty.
Effective bonus types for iGaming in Kenya:
- Welcome bonus.
Extra funds or free bets upon signup. - Deposit bonus.
Matches the percentage of the initial deposit. - Cross-vertical bonus.
A reward for switching between sports and the casino. - Loyalty points.
Redeemable for bets or cash.
Bonuses are not optional here. Africans place value. Give it to them, or someone else will,
Retention also requires local support teams, VIP managers, and personalized offers. Players in Kenya are highly responsive to direct communication, primarily through SMS and mobile push notifications.
Key payment methods in Kenya
The Kenyan iGaming ecosystem could not function without M-Pesa, with over 30 million users, it enables near-instant deposits and withdrawals via mobile phones.
| Method | Notes |
| M-Pesa | Market leader, essential for any local operation |
| Airtel Money | Secondary mobile money provider |
| PayPal | Mainly used for cross-border transfers |
| Skrill | Useful for global transactions |
| Pesapal | Aggregates mobile wallets, suitable for integration |
Without M-Pesa, you’re not in the game. But you need backups — outages do happen,
Operators are strongly advised to implement multiple payment methods to ensure business continuity and avoid user frustration during technical downtimes.
Marketing sources for iGaming in Kenya
In Kenya, marketing is vibrant but tightly regulated. The BCLB must pre-approve all advertising, including slogans, jingles, and SMS campaigns.
Popular marketing channels
- Billboards (especially digital ones — only allowed during 6–9 PM).
- Local radio is particularly effective in rural areas.
- SMS marketing is legal if pre-approved.
- Affiliate and influencer marketing, through blogs and football pages.
- TV and print are less dominant than mobile formats.
You can’t run a billboard without submitting the concept to the BCLB. Same goes for influencer scripts and even WhatsApp campaigns,
SMS marketing: legal and effective
Unlike in Europe or North America, where SMS is often considered spam, Kenya treats SMS as a white-hat channel, so long as it’s registered and approved.
This makes SMS one of the most direct and reliable outreach tools, especially in areas with poor internet penetration.
Risks and challenges to expect
Despite its attractiveness, Kenya’s iGaming market has its friction points.
Key risks for operators:
- Policy instability.
Tax rates can change with little notice (e.g., 10% → 20%). - Slow approvals.
BCLB’s bureaucracy can delay campaigns or launches. - Technical downtime.
Mobile payment systems may fail without proper redundancy. - Fierce competition.
Over 50 licensed operators plus offshore rivals.
When the tax rate was raised, operators had just a few months to adapt, not a year. That’s a big risk,
Operators must also consider compliance fatigue, especially if they plan to expand cross-border into multiple African markets. Kenya may be more structured, but its rules shift fast.
What is the future of iGaming in Kenya?
Kenya’s iGaming evolution isn’t just about growth — it’s about diversification. As football seasons come, operators must offer more than sports betting.
Growing verticals to choose from:
- Crash games (e.g., Aviator)
- Virtual sports
- Esports betting
- Mobile-friendly casino games
When football’s off-season hits, you need something else to keep the users. That’s where virtuals and crash games come in,
Cultural relevance also matters. In Kenya, English-speaking leagues like the Premier League dominate. In francophone Africa, the Ligue 1 or other European leagues take precedence. Constantly localize by language and fanbase.
Conclusion
Kenya’s iGaming market offers scale, speed, and structure, but it is not without its share of work. The opportunity is real for operators who understand the nuances and can adapt to the local mindset.
As Joseph summed it up:
Be transparent. Pay your taxes. Follow the rules. And the market will reward you.
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