Kenya Fights Gambling

Lawmakers alarmed about the rapid growth of illegal gambling in Kenya are starting to crack down, including deporting foreigners involved in the activity and reviewing the working permits of all foreigners seeking entry. Cabinet Secretary Fred Matiang’I (l.) says problem gambling affects the young and vulnerable.

Kenya Fights Gambling

A total of 17 foreigners were recently deported from Kenya in a renewed crackdown on illegal gambling. The foreigners included Chinese, Turkish and Spanish nationals; now the Kenyan government is planning to review the working papers of all foreigners who apply to do business in the country.

According to the Kenya Daily Nation, the country has more than 30 licensed betting firms and casinos, but only a few in operation. Even so, the sector has seen a surge in popularity due to aggressive marketing campaigns aimed at players and the increased use of internet and mobile phones to gamble. According to the country’s gaming regulator, gross gaming revenue in Kenya now is Sh7 billion (US$69.2 million) per month and about Sh100 billion (almost US$1 billion) per year.

Sports betting alone generates some $20 million in turnover per year, according to a recent report by PricewaterhouseCoopers, a number that could reach $50 million by 2020. In terms of revenues, the report added, Kenya is the third largest gambling market in Africa after South Africa and Nigeria, but may actually have more players, including the poor.

Cabinet Secretary Fred Matiang’i said problem gambling mostly affects vulnerable populations, especially young people. “It is the position of government to support the growth of the private sector as the engine of economic growth but only in a manner that is honest, accountable and socially responsive,” he said. “Going forward, we will introduce a regulatory framework predicated on minimizing harm. Our support and action in the sector will be purely driven by the government’s duty of care, responsibility and dedication to public interest.”

Speaking before the Betting Control and Licensing Board at the Kenya School of Government, he added, “We are not using the guise of revenue to allow a broken sector. Over 90 percent of players in gaming are foreigners, they repatriate a huge amount of money to their countries.

“The ubiquity and craze of gaming in Kenya has caused dire social and economic strain at the behest of a few elite, majority of whom are non-Kenyans and live outside the country,” he said.

In related news, Kenya’s High Court has temporarily suspended an order by the BCLB that blocked celebrities from participating in gambling advertisements and promotions. The ban was announced April 30 by the BCLB but High Court Judge James Makau suspended it after Kamau Wanjohi, a reported gospel singer better known as MC Moreydoc, filed a lawsuit against the board along with Chairman Cyrus Maina and CEO Liti Wambua. Wanjohi said his income would be severely affected by the ban.