Kenya holds a strong position within the Sub-Saharan African iGaming industry, coming in third after Nigeria and South Africa. The strong performance of the country’s market is underpinned by a number of key drivers, such as a high level of internet penetration of over 40% and a population that makes use of mobile devices. Together, these factors have helped drive the expansion of online gambling and betting across the nation.
Market growth and contributing factors
The Kenyan iGaming industry is recording a compound annual growth rate (CAGR) of 12.3%. The growing popularity of sports betting, online casinos, and eSports helps to drive this growth. These sectors are managing to effectively target millions of young, technology-savvy individuals who comprise a large share of the gaming populace.
One of the primary enablers of this widespread participation is the availability of mobile payment systems, more so M-Pesa. These systems enable low-cost transactions, thus stretching the scope of online gaming to even rural places.
In an interview with iGaming Expert, Bojan Mitic, CEO at Fazi, pointed out that, “, betting participation in countries like Kenya (83%), South Africa (74%), and Ghana (73%) is at an all-time high.” This figure highlights the high potential for the growth of online casinos and the overall potential that exists within the market. The projected growth in the valuation of the market from $6.7 billion in 2023 to $19.4 billion by 2032 indicates long-term consistent growth and further enhances the attractiveness of the Kenyan iGaming industry.
Regulatory environment
Kenya’s regulatory landscape is poised for significant transformation with the establishment of the Gambling Control Bill 2023, which is waiting for the President’s signature of approval. The bill will transform the industry through the introduction of several reforms. Among them is the inclusion of a clause to compel operators to pay a deposit of Ksh 200 million, as well as a clause to impose a 15% tax on gaming revenue. The bill is also likely to impose stricter controls on foreign licenses.
The probable impact of these regulatory reforms remains under debate. While the measures are designed to foster a more secure and responsible gaming space, there are fears that their impact could be felt by smaller operators, who may struggle with the new finance and compliance standards. The enactment of the will be an inflection point for the Kenyan iGaming industry, with the potential to reshape competitive dynamics and impact future growth trajectories.
Success factors in the Kenyan industry
Success in the African iGaming industry, such as in Kenya, is determined by a number of major criteria. Understanding the local market and forming strong partnerships is essential. For example, collaborating with recognised operators ensures that content reaches a bigger audience. It also assists via reliable platforms to boost credibility and accessibility.
Localisation of game material is another critical consideration. Most popular iGaming games in Africa combine classic slot principles with graphically rich content and smooth gameplay. The localisation addresses the specific tastes and expectations of the local market, increasing popularity and usage.
A streamlined gaming experience is of prime importance, considering the popularity of mobile gaming. Games must be lightweight and fast-loading, as well as possess impeccable mobile support to offer a smooth and enjoyable experience even on lower bandwidth connections. A concerted focus on efficiency in game design has a direct correlation with a better overall player experience. Finally, market growth and heightened visibility are essential for long-term growth. Active participation in prominent industry events reinforces a company’s visibility, enhances stakeholder relations, and creates new business prospects throughout the continent.
The significance of local representation
Local representation is critical for navigating Africa’s gaming market. Having an on-the-ground presence enables enterprises to form strong relationships with both operators and regulators, resulting in a seamless market launch and compliance with local gaming legislation.
“A dedicated on-the-ground presence allows operators to build strong relationships with operators and regulators, ensuring smooth market entry and compliance with local gaming laws,” Bojan stated.
Local representation is critical to remaining relevant to player preferences. Companies can drive game development and personalise their products by understanding local gaming behaviours and cultural variations. Furthermore, a local presence allows for more effective support and communication with partners. This representation results in seamless integration and continuous cooperation. Such local expertise gives companies a major competitive advantage in Africa’s dynamic gaming market, enabling the delivery of region-specific content that resonates with players.
The Kenyan iGaming industry holds a lot of potential, just like many of its counterparts within the African continent. With the proper legislation in place, collaboration among industry stakeholders, and observing responsible gambling, the industry could be a landmark of opportunity and growth for the country and a benchmark for other jurisdictions.
