Kenya’s online gambling sector is entering a new era following the passage of the Virtual Asset Service Providers Bill, 2025, which regulates digital assets, including cryptocurrencies and stablecoins. The law closes offshore loopholes, enhances transparency, and provides a safer framework for both operators and players.
Digital Oversight Brings Clarity to Kenya’s Gambling Market
Passed by Parliament on October 13 and signed into law by President William Ruto on October 15, the bill establishes a clear legal framework for crypto use in Kenya. Previously, many operators relied on unregulated offshore wallets to process payments, creating risks for players and regulators alike.
The legislation aims to improve transparency, strengthen consumer protection, and provide legitimate operators with a secure path to operate within Kenya’s legal system.
Dual-Regulator Model Promotes Innovation and Security
The law introduces a dual-regulator approach for digital finance. Specifically, the Central Bank of Kenya (CBK) will license stablecoins and other virtual assets, while the Capital Markets Authority (CMA) will oversee crypto exchanges and trading platforms.
Finance Committee Chair Kuria Kimani commented:
“We are hoping that Kenya can now be the gateway into Africa.”
Similarly, CMA Acting CEO Wyckliffe Shamiah emphasized:
“By licensing and supervising virtual-asset platforms, we will safeguard investors, promote transparency, and curb money laundering risks.”
This model aligns Kenya with international best practices, encouraging innovation while reducing fraud and money-laundering risks.
Stricter Compliance for Betting Operators
Licensed gambling operators must now adhere to tighter Know Your Customer (KYC) and anti-money-laundering (AML) standards for all crypto transactions. Although compliance costs may rise, analysts note that these rules legitimize the sector and strengthen player trust.
The CBK views the new law as a step toward reinforcing financial stability. Moreover, the reform is expected to phase out offshore crypto channels that previously bypassed banking oversight.
A Transparent and Accountable Digital Betting Market
Kenya’s new legislation signals a shift toward a more accountable and transparent digital gambling environment. Operators are expected to adapt quickly to the updated framework as Kenya positions itself as a hub for digital finance in Africa.
Ultimatly, the law raises a key question for the industry: will stricter regulations fuel sustainable growth, or could they slow innovation in one of Africa’s fastest-growing online gaming markets?
