Kenya's 2026 Export Gambling Licence Explained
Kenya's LN 113/2026 licences foreign-based operators that serve only markets outside Kenya: KSh100m capital, a KSh200m bond and a hard Kenya geo-block.
Contents
Legal Notice 113 of 2026 was published in the Kenya Gazette and took effect on 29 June 2026. It sets the rules for a licence that most coverage of Kenya’s new gambling law skipped: section 79(4) of the Gambling Control Act, 2025 lets a gambling operator based outside Kenya, which does not intend to offer online gambling in Kenya, apply to the Gambling Regulatory Authority (GRA) for a licence anyway. In effect it is an export licence, and its holders must keep Kenyan residents off their platforms.
An earlier version of this article read the regulations as the price of entry for offshore operators serving Kenyan players. That reading was wrong, and this update replaces it with what the Act and the regulations actually say.
- The Gambling Control (Foreign-Based Operators) Regulations, 2026 (LN 113/2026, in force 29 June 2026) cover operators licensed under section 79(4) to serve markets outside Kenya only.
- Holders need KSh100m paid-up capital and a KSh200m bond or bank guarantee, and must geo-block and ID-check Kenyan residents out.
- The 30% Kenyan shareholding rule can be waived where all revenue is earned outside Kenya.
- Operators that want Kenyan players need the ordinary online licence under section 79(1): a Kenyan-registered company, a Kenyan address and 30% Kenyan shareholding. Serving Kenya without one exposes a company to a fine of up to KSh50 million.
- A High Court stay keeps the new fees and capital requirements in the separate Licensing Regulations suspended; judgment is scheduled for 2 October 2026.
Section 79 has two doors
The Act treats a foreign-based operator in one of two ways, and the difference decides which rules apply.
Section 79(1) is the door into Kenya. A gambling operator based in a foreign country gets an online gambling licence only if it is registered in Kenya, has a registered physical address there and meets the requirements the Authority prescribes. Section 79(2) adds audited accounts for the previous year. Every licensee must also satisfy section 29, which requires at least 30% of shares to be held by Kenyan citizens and all licensed money to run through an account with a Kenyan financial institution. Section 79(3) makes it an offence for a foreign-based operator to offer online gambling in Kenya without a licence, with a fine of up to KSh50 million for a company.
Section 79(4) is the other door. An operator based abroad that does not intend to carry on online gambling in Kenya may still apply for a licence, and section 79(5) exempts it from the 30% shareholding rule. LN 113 is the rulebook for that second group.
| Point | s.79(1) online licence | s.79(4) foreign-based operator |
|---|---|---|
| Who it is for | Operators serving players in Kenya | Operators serving only markets outside Kenya |
| Kenyan company and address | Required by the Act | Not required by s.79(4); Form 1 asks for the host-jurisdiction address |
| 30% Kenyan shareholding | Required (s.29(a)) | Exempt (s.79(5)), subject to the revenue test in reg. 5 |
| Capital and bond | Set by the Licensing Regulations; new figures suspended pending judgment | KSh100m capital plus KSh200m bond or guarantee (reg. 4) |
| Kenyan residents | The licensed market | Must be blocked (reg. 7) |
What LN 113 asks of a foreign-based operator
Money. Regulation 4 sets minimum paid-up capital of KSh100 million and a security bond or bank guarantee of KSh200 million. The Second Schedule lists the Authority’s fees: 10 million shillings to apply, 100 million for the licence, 10 million as an annual operating licence fee, and 5 million and 20 million for the renewal application and renewal. The bond is the line that takes longest to arrange, because a bank or surety has to agree to stand behind you and will price that against your balance sheet.
Fit and proper. Regulation 3 applies the fit-and-proper test in section 29 even though the target market is outside Kenya.
Host-market compliance. Regulation 6 requires the operator to comply with the laws of every host jurisdiction and to give the Authority a certificate of compliance, or its equivalent, from the host regulator. A breach of host-country law counts as a material breach in Kenya and can lead to immediate revocation. The Kenyan licence therefore sits on top of whatever authorisation each target market requires; it does not replace it.
Keeping Kenya out. Regulation 7 requires IP geo-blocking and identity verification so that persons resident in Kenya cannot use the platform, and the Authority runs quarterly technical audits of that perimeter. Regulation 8 gives it remote, real-time access to the central server and gaming systems to check that no domestic bets are processed.
AML and penalties. Regulation 9 makes every licensee a reporting institution under the anti-money-laundering laws of Kenya and of the host jurisdiction. Under regulation 10, breaking host-country law or letting Kenyan residents in can lead to suspension or revocation and to forfeiture of the bond.
Who this licence suits
Set against an offshore permit, the numbers are stark. An Anjouan licence costs from about €17,828 a year with no local shareholders and no bond. LN 113 asks for KSh300 million committed in capital and guarantee before the Authority’s fees, and it still expects you to be lawful in each market you serve.
That makes it a narrow product. It could interest a group that already holds host-market authorisations, wants a Kenyan supervisor on its record and can carry the bond without strain. An operator looking for a low-cost base to serve several markets will find cheaper options elsewhere. Our offshore versus onshore comparison covers that trade-off in general terms.
The court case
In July 2026 the High Court suspended the Gambling Control (Licensing) Regulations, 2026 in a judicial review challenge. In early August it partly lifted the stay so that licensing could resume, keeping only the fee increases and the gambling capital requirements on hold, and listed judgment for 2 October 2026, as iGaming Business reported on 11 August. The reports we have seen concern the Licensing Regulations, which govern operators licensed for the Kenyan market; they do not mention LN 113. We will update this page once the judgment is published.
What to do now
If you serve Kenyan players, the relevant route is the section 79(1) online licence, with a Kenyan company, a Kenyan address and 30% Kenyan shareholding. The fee and capital figures you will be held to depend on the 2 October judgment, so hold off on budgeting against the suspended schedules until it is out.
If you already geo-block Kenya, LN 113 changes nothing for you. Keep the block working and documented; our AML and KYC guide covers the controls that hold up when a regulator checks.
If you are weighing the foreign-based operator licence, start with the bond. It depends on a third party agreeing to underwrite you and has the longest lead time of anything in the file. Then list the host-market certificates regulation 6 will ask for, because each one is a licence or ruling you need anyway.
For a wider view of which regimes still give breadth at a sensible cost, see the best gambling licences for 2026 or run the licence finder. If you want the Kenyan options checked against your own markets and numbers, book a free consultation and we will map them, with government and service costs shown separately.
Frequently asked questions
What is a foreign-based operator under Kenya's 2026 regulations?
An operator licensed under section 79(4) of the Gambling Control Act, 2025: a gambling operator based outside Kenya that does not intend to offer online gambling in Kenya. The Gambling Control (Foreign-Based Operators) Regulations, 2026 (Legal Notice 113, in force since 29 June 2026) set the terms of its licence. It is a Kenyan licence for serving other markets and gives no access to Kenyan players.
What capital and fees does the foreign-based operator licence require?
Regulation 4 requires KSh100 million paid-up capital and a KSh200 million security bond or bank guarantee. The Second Schedule lists an application fee of 10 million shillings, a licence fee of 100 million, an annual operating licence fee of 10 million, and renewal fees of 5 million for the application and 20 million for the licence.
Can a foreign-based operator take bets from people in Kenya?
No. Regulation 7 requires IP geo-blocking and identity verification so that Kenyan residents cannot reach the platform, and the Gambling Regulatory Authority audits that perimeter every quarter. Regulation 8 also gives the Authority real-time remote access to the operator's servers. Letting Kenyan residents in can cost the licence and the bond.
Does the 30% Kenyan shareholding rule apply to foreign-based operators?
Section 29(a) of the Act requires every licensee to have at least 30% of its shares held by Kenyan citizens. Section 79(5) exempts section 79(4) applicants from that rule, and regulation 5 ties the waiver to showing that the operator's entire revenue is earned outside Kenya. An operator that wants Kenyan customers applies under section 79(1) instead, where the 30% rule applies.
Are Kenya's new gambling fees and capital requirements in force?
Not all of them. In July 2026 the High Court stayed the Gambling Control (Licensing) Regulations, 2026, and in August it narrowed the stay to their fee increases and capital requirements, with judgment scheduled for 2 October 2026 (iGaming Business, 11 August 2026). Those reports concern the Licensing Regulations; they do not mention the Foreign-Based Operators Regulations. Check the judgment before budgeting against either set.
Sources
This article is for general informational purposes only and is not legal, tax or financial advice. Consult a qualified professional before acting.
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