Kenya’s Sh2,800 Per Second Betting Market Rivals Nairobi Securities Exchange

Kenyans placed a record-breaking Sh88.5 billion in online bets between June 2022 and June 2023 despite a crackdown on the sector and increased taxes.

The Kenya Revenue Authority collected Sh6.64 billion in excise taxes from gaming firms alone, thanks to the new 7.5 per cent tax on waged amounts. This translates to an average of Sh242 million in bets placed daily, Sh10.1 million hourly, Sh168,333 per minute, or Sh2,806 every second. The gambling industry has become a full-time economic activity, rivalling the Nairobi Securities Exchange with its equity turnover of Sh94.2 billion.

Despite the heavy crackdown and increased taxation, the rise of betting in Kenya continues. In 2019, the gaming industry in Kenya was hit hard by allegations of criminal activity, including money laundering and tax evasion, causing a near collapse. However, the industry has made a comeback with the rise of devoted followers who are eager to make quick money. Unfortunately, this has led to concerns among health experts about the addiction to gambling. This disorder is so strong that it makes it almost impossible for those affected to stop gambling, despite the risks involved.

According to Silas Kiriinya, a consultant psychologist and CEO of Amazon Counselling Centre, the number of people seeking professional help for this addiction is increasing every day. Interestingly, Kenya did not allow gambling until 1952 when the Christian Council of Kenya requested its decriminalization, arguing that it would lead to better regulation of the vice.

However, with the introduction of the Internet and mobile phones in the 1990s, foreign online betting companies entered the market, leading to a surge in the gambling craze. In 2021, the percentage of adults who gambled rose significantly from 1.9% in 2019 to 13.9% with urban males aged 18 to 36 being the most likely to participate. The majority of gamblers have a higher level of education, but those between the ages of 18 and 25 are the most likely to bet. Despite a decrease from 22.7% in 2019, 11.2% of Kenyan adults still view betting as a reliable source of income.