- Is there a Gambling Act (or equivalent) in place?
- Is online gambling a regulated activity?
- Who are the regulators?
- Do laws set out a clear licensing framework for gambling (including licensing process, criteria, submission requirements, licensing conditions and ongoing compliance requirements)
- Is gambling regulation specific to:
- Are there Data Protection laws in place?
- Is there a Data Protection Regulator?
- Are there any exchange controls restricting the transfer of cash out of and into the country?
- Are there any tax implications of transferring cash in/out of the country?
- Are there any tax implications of offering trading activities remotely into the country?
jurisdiction
1. Is there a Gambling Act (or equivalent) in place?
Yes. The Betting, Lotteries and Gaming Act, Cap 131 as well as the Betting, Lotteries and Gaming Regulations, 1966.
2. Is online gambling a regulated activity?
No. There are on-going efforts to introduce a regulatory framework through the draft Gambling Control Bill of 2023 and the draft National Lottery Bill of 2023.
3. Who are the regulators?
The Betting Control and Licensing Board.
4. Do laws set out a clear licensing framework for gambling (including licensing process, criteria, submission requirements, licensing conditions and ongoing compliance requirements)
Yes.
5. Is gambling regulation specific to:
5.1 Betting?
Yes.
5.2 Sports?
No, there is no license specific to sports. However, bookmakers who receive or negotiate bets on sports will require a license.
5.3 Skill games?
Yes.
5.4 Card games?
Yes.
5.5 Casinos?
Yes.
5.6 Lotteries?
Yes.
5.7 Arcades?
No.
6. Are there Data Protection laws in place?
Yes. The Data Protection Act, No. 24 of 2019, the Data Protection (General) Regulations, 2021, the Data Protection (Complaints Handling Procedure and Enforcement) Regulations, 2021 and the Data Protection (Registration of Data Controllers and Data Processors) Regulations, 2021.
6.1 If yes, do they apply extra territorially?
Yes. The Data Protection Act applies to data controllers or data processors who are not established or ordinarily resident in Kenya, but who process personal data of data subjects located in Kenya.
7. Is there a Data Protection Regulator?
Yes. The Office of the Data Protection Commissioner.
8. Are there any exchange controls restricting the transfer of cash out of and into the country?
No. However, Section 33H of the Central Bank of Kenya Act (Chapter 491, Laws of Kenya) provides that every payment made:
- in Kenya to or for the credit of a person outside Kenya; or
- outside Kenya to or for the credit of a person in Kenya; or
- in Kenya (other than a payment for a current transaction) between a resident and non-resident,
must be effected through a bank or a microfinance bank authorised by the Central Bank of Kenya to transact foreign exchange business.
9. Are there any tax implications of transferring cash in/out of the country?
Yes. Excise duty is payable as follows:
- on fees charged for money transfer services by banks, money transfer agencies and other financial service providers, 20% of their excisable value; and
- on fees charged for money transfer services by cellular phone service providers, 12% of their excisable value.
10. Are there any tax implications of offering trading activities remotely into the country?
Yes. Corporation tax is chargeable on income from a digital marketplace (at the rate of 30% for residents and 37.5% for non-residents) if the income is deemed to have accrued or have been derived from Kenya for purposes of the Income Tax Act (Chapter 470, Laws of Kenya). Value Added Tax is payable at the rate of 16% of the taxable value of the activities by business owners trading on the internet, an electronic network or through a digital marketplace when the activities are supplied in Kenya.
Under Section 8 of the Value Added Tax Number 35 of 2013, a supply of services is made in Kenya if the place of business of the supplier from which the services are supplied is in Kenya. If the place of business of the supplier is not in Kenya, the supply of services shall be deemed to be made in Kenya if the recipient of the supply is not a registered person and the services are electronic services delivered in Kenya at the time of supply.
Other applicable taxes include: Excise duty chargeable at 7.5% of the amount wagered or staked for betting, gaming and lottery activities; and withholding tax chargeable at the rate of 20% (for both residents and non-residents) on the winnings from gaming and betting.
