Foreign betting companies that take bets from Kenyan residents risk a fine of up to Ksh50 million under new regulations proposed by the government.
Operators also risk losing their licenses and having their security bonds seized for breaching the regulations.
The Gambling Control (Foreign-based Operators) Regulations, 2026, seek to tighten oversight of offshore gambling firms licensed in Kenya but operating in foreign markets.
The proposed rules require such operators to implement effective geo-blocking systems and identity verification measures to prevent Kenyan residents from accessing their betting platforms.
Govt on Foreign Betting Firms
At the center of the proposed regulations is a tough penalty regime targeting operators who fail to block Kenyan residents or breach the laws of the countries where they operate.
“A Foreign-based Operator shall implement robust technical measures, including but not limited to Internet Protocol Geo-blocking and Identity Verification to ensure that persons resident in Kenya cannot access their gambling platforms,” reads part of the new regulations.
Under the proposals, the Gambling Regulatory Authority may impose an administrative fine of up to Ksh50 million on any foreign-based operator that allows unauthorized access by Kenyan residents.
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The authority may also suspend or revoke the operator’s licence and order the forfeiture of its security bond to the State.
The government is currently increasing oversight of the gambling sector as concerns persist over access to betting services and compliance with licensing conditions.
Foreign operators seeking licenses under the regulations will also be required to maintain a minimum paid-up capital of Ksh100 million and provide a security bond or bank guarantee of Ksh200 million to ensure compliance with regulatory requirements.
The government says the measures are intended to ensure that only financially stable firms with the capacity to meet regulatory obligations are allowed to operate under Kenyan licenses.
The regulations also seek to protect the integrity of the country’s gambling industry by preventing abuse of licensing arrangements.
In addition, any breach of the laws of a host jurisdiction where the operator conducts business could trigger regulatory action in Kenya.
The regulations classify such breaches as material violations that may result in immediate revocation of the operator’s Kenyan licence.
Operators will also be required to submit compliance certificates issued by competent authorities in their host jurisdictions confirming that their gambling activities are lawful and properly licensed.
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The requirement is intended to ensure that companies benefiting from Kenyan licences maintain high compliance standards both locally and abroad.
Increased Monitoring of Operators
The regulations give the Gambling Regulatory Authority wider powers to monitor the activities of foreign-based operators.
Under the proposals, firms will be required to provide regulators with remote, real-time access to their central servers and gaming systems.
The authority says the access will help it monitor financial flows and verify that no bets are being processed from within Kenya.
The regulator will also conduct quarterly technical audits to test the effectiveness of geo-fencing systems installed by operators.
These audits will assess whether Kenyan residents can access offshore gambling platforms despite restrictions.
The proposed rules further classify all operators licensed under the framework as reporting institutions for anti-money laundering purposes.
This means they will be expected to comply with anti-money laundering obligations in both Kenya and their host jurisdictions.
If adopted, the regulations are likely to reshape the way foreign gambling operators use Kenyan licences.
Firms will be required to demonstrate that their revenue is generated outside Kenya and that they are not taking bets from local punters.
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