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Kenya Gambling Sector: New Regulations Promulgated into Law - McKay Advocates
Kenya's Gambling Regulatory Authority gazetted six regulations under the Gambling Control Act 2025 on 30 June 2026, introducing new licensing, operational, and advertising standards. A 60-day transition period applies for existing licensees, and a proposed Online Hybrid Licence was removed, requiring separate licenses for online betting and casino operations. B2B providers are now regulated, and minimum capital requirements range from KES 5 million to KES 2 billion. The new rules also mandate certification of online games, equipment licenses, and employee accreditation.
Family Trusts As A Tool of Wealth Planning in Kenya - McKay Advocates Guide
A family trust is a legal arrangement for managing and transferring wealth across generations. It involves a settlor transferring assets to trustees, who manage them for beneficiaries, with an optional enforcer. Key benefits include avoiding succession proceedings, preserving wealth, protecting assets from liabilities and spousal claims, and tax exemptions on asset transfers. Assets can be transferred during the settlor's lifetime or via a will, offering flexibility in estate planning.
Rethinking the Legal & Regulatory Framework to curb Real Estate Corporate Fraud in Kenya
The article examines the prevalence of real estate investment fraud in Kenya, citing cases such as DECI, Goldenscape, Simple Homes, and Cytonn that resulted in significant investor losses. It identifies regulatory gaps and the lack of oversight for most real estate projects as key factors enabling fraud. The author argues for a reformed legal and regulatory framework to better protect investors from fraudulent developers and promoters.
KRA’s Agency Notices in Kenya: Lessons from the Katahira Case 2026
The High Court in Katahira & Engineers International Limited v Kenya Revenue Authority ruled that KRA cannot issue Agency Notices under Section 42 of the Tax Procedures Act when the underlying tax assessment has been nullified by the Tax Appeals Tribunal. The court emphasized that nullified assessments are binding and can only be challenged through appellate or judicial review proceedings, not by administrative enforcement. The decision also clarified that a stay order of an agency notice compels the bank to restore the taxpayer's unrestricted access to their accounts. This reinforces the doctrine of exhaustion of remedies and the right to fair administrative action under Article 47 of the Constitution.
Kenya Strengthens ICT Investment Appeal with Formal Data Centre Regulations.
The Communications Authority of Kenya has published the Revised Telecommunications Market Structure, formally classifying commercial data centres under the Unified Licensing Framework for the first time. This eliminates prior ambiguity and provides regulatory clarity for data centre operators. The framework requires operators to obtain licenses such as Network Facilities Provider or Application Service Provider based on their activities. These changes, combined with liberalised ownership rules and fiscal incentives, strengthen Kenya’s regulatory environment for ICT investment.
International Recovery of Succession Assets in Dubai: Legal Framework and Practical Insights from Cross-Border Practice
The article outlines procedural differences between Dubai and Kenya in cross-border estate recovery, highlighting Dubai's inquisitorial court system, strict document authentication, and court-led asset distribution. It uses a case example involving AED 2,680,000 in assets to illustrate these contrasts, emphasizing the need for strategic coordination across jurisdictions. Successful recovery depends on understanding Dubai's unique legal processes to ensure timely beneficiary entitlements.
Disciplinary Due Process In Employment: Procedural Fairness, Timeliness, And Evidentiary Rights in Focus
The article examines disciplinary due process under Kenyan employment law, focusing on Section 41 of the Employment Act, 2007, and constitutional principles. It highlights employer obligations for procedural fairness, timely hearings, employee representation, access to evidence, and appeal rights, illustrated by recent cases including Mbogo v Harleys Limited, Kamundia v National Cement Company Limited, Yego v Kenya Post Office Savings Bank, and Kimani v Rosslyn Academy. The courts in these cases emphasized that flawed disciplinary processes, such as failure to provide documents, inordinate delays, and ambushing employees with new allegations, can render terminations unfair, though compensation may be denied if the employee is guilty of gross misconduct.
Due Process in the ‘Trial Period’: Why Probationary employment status cannot override Constitutional Guarantees.
The article examines the legal framework for terminating probationary employment in Kenya, highlighting the conflict between Section 42(1) of the Employment Act (which excludes probationary employees from procedural safeguards) and constitutional rights to fair administrative action and labour rights. It discusses court decisions, including the Court of Appeal and High Court, which have declared Section 42(1) unconstitutional, affirming that probationary employees are entitled to due process under Section 41 of the Act. The article clarifies distinctions between probationary and fixed-term contracts and emphasizes employers' obligations to provide reasons and a hearing before termination.
Employment Legal Advisory on Handling Performance: Closing Compliance Gaps
The article examines three grounds for termination under Kenyan employment law: redundancy, poor performance, and abscondment. It discusses statutory requirements under the Employment Act, 2007, including notice, fair selection criteria, and procedural safeguards. Recent court cases illustrate pitfalls, such as redundancy used in bad faith (Mburu v Standard Chartered Bank), failure to support underperforming employees (Vincent Namai v National Bank), and the need for fair hearing even in abscondment cases (Corrugated Sheets Limited v Ngao). The piece emphasizes that employers must comply with legal standards to avoid unfair dismissal claims.
The Five-Year Limitation on Addressing Historical Land Injustices: A Critical Appraisal of the Land Commission (Amendment) ACT 2025
Kenya's National Land Commission (Amendment) Act 2025 introduces a five-year limitation period for filing claims related to historical land injustices. Proponents argue the deadline enhances administrative efficiency and legal certainty, while critics contend it may violate constitutional guarantees of access to justice and undermine transitional justice principles. The amendment raises concerns about excluding marginalized communities and potentially validating unlawfully acquired land titles. The article critically examines the balance between procedural finality and substantive justice under the new law.
Keeping Value in Kenya: The Promise and Challenge of the Local Content Bill 2025
The Local Content Bill 2025 aims to embed the Buy Kenya, Build Kenya policy into law, requiring foreign companies to source 60% of goods and services from local firms, maintain an 80% Kenyan workforce, and purchase agricultural inputs from Kenyan farmers. Non-compliance may result in fines of at least KES 100 million and imprisonment for executives. The bill seeks to boost domestic industry and employment but raises concerns about implementation challenges, potential trade conflicts with WTO and EAC rules, and the need for clear definitions to prevent manipulation.
Statutory Timeline for Kenyan Small Claim Courts | McKay Advocates Insights
The article examines conflicting High Court decisions on whether the 60-day statutory timeline for Small Claims Court judgments is mandatory or aspirational. Some decisions treat the timeline as directory, prioritizing substantive justice, while a recent ruling interprets it as jurisdictional, rendering late judgments void. The inconsistency leaves the law unsettled and calls for reform through practice directions or legislative clarity to preserve the court's efficiency and integrity.
From Regulation to Reality: What Kenya’s Virtual Asset Act Means for the Future of Digital Finance
Kenya's Virtual Asset Service Providers Act 2025 introduces a licensing regime for virtual asset service providers (VASPs), with dual oversight by the Central Bank of Kenya and the Capital Markets Authority. The law mandates compliance with anti-money laundering, cybersecurity, and governance standards, while granting regulators real-time read-only access to transaction records. Concerns include potential jurisdictional overlap between regulators, high compliance costs for small innovators, and data privacy risks. The Act positions Kenya alongside global regulatory trends like the EU's MiCA and South Africa's FSCA approach.
Turning Exits Into Smooth Transitions: Kenya Employment Law | McKay Advocates
The article discusses mutual separation agreements in Kenyan employment law, highlighting that while they offer a lawful way to end employment, courts require fairness, voluntariness, and proper process. A recent case, Neser v Globology Ltd [2025] eKLR, demonstrates that such agreements cannot mask retaliatory or unfair termination, with the court awarding damages for unfair dismissal, discrimination, and psychological harm. The piece underscores the importance of independent legal advice and clear documentation to ensure agreements are enforceable.
Gambling Control Bill 2023 Now Awaits Presidential Assent
The Gambling Control Bill 2023 has been passed by the National Assembly and now awaits presidential assent. Once enacted, it will repeal the Betting, Lotteries and Gaming Act 1966 and introduce a modern regulatory framework for Kenya's gambling sector. Key provisions include online gambling regulation, extended license validity (36 months), a 30% local ownership requirement, mandatory security deposits (KES 100 million for online operators, KES 20 million for casinos), advertising guidelines, and a minimum stake of KES 20 for online gambling.
Progress on New Gambling Laws in Kenya - McKay Advocates Legal Insights
On 1 July 2025, the Mediation Committee submitted its report on the Gambling Control Bill 2023, reconciling differences between the National Assembly and Senate. The Bill aims to replace Kenya's outdated 1966 gambling law with a modern framework, introducing specific licenses for online gambling, public lottery licenses, extended 36-month validity, 30% local ownership, capital adequacy requirements, and mandatory security deposits. The mediated version now requires approval by both Houses before presidential assent.
Why Global Firms and Innovators Should Take a Closer Look at Kenya: Attractive New Tax Incentives under the Nairobi International Financial Centre
Kenya's Finance Act 2025 introduces tax incentives for firms operating under the Nairobi International Financial Centre (NIFC). Certified start-ups benefit from a reduced corporate tax rate of 15% for the first three years and 20% for the following four years. Large investors investing at least KES 3 billion and meeting localisation thresholds can access a 15% tax rate for the first 10 years and 20% for the next 10 years. Additional incentives include dividend reinvestment tax exemptions and a 15% tax rate for carbon market players for the first 10 years.
Tax Changes for Betting and Gaming Operators in Kenya: Finance Act 2025
The Finance Act 2025, signed into law on 26 June 2025, introduces key tax reforms for Kenya's gaming and gambling sector. Withholding tax is revised to 5% of withdrawals from a punter's betting wallet, replacing the previous 20% on net winnings. Excise duty on betting, gaming, prize competitions, and lotteries is reduced from 15% to 5%, but is now applied to amounts deposited into a customer's betting wallet rather than amounts wagered. The amendments require operators to adjust compliance mechanisms, customer terms, and accounting systems.
Kenya High Court Decision for Kenya's Public Benefit Organisation | McKay Advocates
The High Court of Kenya declared several provisions of the Public Benefit Organizations Act 2013 unconstitutional in Petition No. E519 of 2024, ruling that requirements for fresh registration, mandatory disclosure of personal information, government-dominated board composition, political interference in the disputes tribunal, compulsory federation membership, and discretionary recognition of forums violate constitutional rights including freedom of association, privacy, and fair administrative action.
Developments & Regulations on Gambling and Betting in Kenya – May 2025
Kenya amended the Betting, Lotteries and Gaming Act to empower the Betting Control and Licensing Board to enforce anti-money laundering and counter-terrorism financing compliance. In April 2025, the BCLB suspended all gambling activities for 30 days to regulate advertisements and promote responsible gambling. The BCLB also shut down 58 illegal gambling platforms. The Gambling Control Bill 2023, which would replace the current Act, is pending mediation between the National Assembly and Senate.
What the Virtual Asset Service Providers Bill 2025 means for Kenya’s Digital Space
Kenya has proposed the Virtual Asset Service Providers Bill 2025, which aims to regulate digital assets such as cryptocurrencies and stablecoins, and service providers like exchanges. The Bill defines virtual assets and virtual asset service providers (VASPs), and requires VASPs to obtain licenses from the Central Bank of Kenya or the Capital Markets Authority. VASPs must comply with consumer protection, data protection, and anti-money laundering obligations. The Bill also prohibits natural persons from providing virtual asset services and requires existing providers to obtain licenses within six months of enactment.
Understanding the Role of Kenya Green Finance Taxonomy (KGFT) in Kenya: A Bold Step towards a Sustainable Future
The Central Bank of Kenya launched the Kenya Green Finance Taxonomy (KGFT) on April 4, 2025, to guide financial institutions and businesses toward environmentally sustainable investments. The framework classifies economic activities based on their contribution to climate goals and applies to sectors like banking, energy, agriculture, and transport. Banks are required to adopt metrics such as turnover, capital expenditure, and operating expenditure for disclosure, with an initial voluntary 18-month transition period before mandatory compliance. The KGFT aims to facilitate green finance flows and support Kenya's environmental objectives and Vision 2030.
The New Land Rates Regime And Why Counties Need To Work Overtime to Comply With The National Rating ACT 2024
The National Rating Act, 2024 was assented to on December 4, 2024, repealing the Rating Act and Valuation for Rating Act. It introduces a new framework for county governments to levy land rates, including on freehold non-agricultural property, and establishes the Office of the Chief Government Valuer and a National Rating Tribunal. Counties must align their legislation with the Act within two years from December 24, 2024. The Act also mandates public participation and detailed procedures for setting rates and valuation rolls.
Update: Kenya's president put’s pen to paper the Business Laws (Amendment) Bill of 2024
Kenya's President signed the Business Laws (Amendment) Bill 2024 into law on 11 December 2024, with significant amendments. The extended compliance deadline for banks and mortgage finance companies to meet a KES 10 billion minimum core capital is now 31 December 2029. Licensed banks are exempt from licensing requirements for credit guarantee businesses. Non-deposit-taking microfinance businesses must comply with data protection, privacy, and consumer protection laws. The requirement for manufacturers to register with the Kenya Bureau of Standards was deleted.
Execution of Documents by a Company
Under Kenyan law, a company can validly execute documents if signed by two authorized signatories (two directors or a director and secretary) or by a director in the presence of an attesting witness. The board of directors may also delegate authority to attorneys via a power of attorney. The article discusses the doctrine of ostensible authority, which may bind a company to contracts signed by an officer with apparent authority, even if actual authority is lacking, as upheld in Kenyan case law.
Setting Up Business in Kenya: A Comprehensive Guide
This article outlines the various legal entities available for setting up a business in Kenya, including private and public limited companies, foreign companies, limited liability partnerships, general and limited partnerships, and sole proprietorships. It details key features such as shareholder limits, director requirements, liability, tax rates, registration costs, and compliance obligations for each entity. The guide helps entrepreneurs choose a suitable structure based on factors like business size, ownership, and tax considerations.
Navigating the Changes: What Non-profits Need to Know About Income Tax Exemptions in Kenya
The article discusses the new Income Tax (Charitable Organizations and Donations) Rules 2024 in Kenya, which set out the requirements for charitable organizations to qualify for income tax exemptions. It outlines prescribed charitable purposes such as relief of poverty, advancement of religion, education, and relief of distress, along with eligibility criteria and the application process. The rules require organizations to be established and operated exclusively for charitable purposes and to benefit the public in Kenya.
Court of Appeal Declares Kenya's Finance Act 2023 Unconstitutional: Impact on Tax; Kenyan Law
The Court of Appeal declared Kenya's Finance Act 2023 unconstitutional in its entirety, citing lack of public participation and violations of the budget-making process. As a result, tax amendments introduced by the Act, including new PAYE rates, VAT increases on petroleum, and various new taxes, have been negated. Taxpayers will revert to pre-2023 rates for items like turnover tax and excise duty, and the Housing Levy remains in force under separate legislation. The government has applied for a stay of execution, pending appeal to the Supreme Court.
NEMA appointed as the Designated National Authority under the Climate Change Act, 2016
Kenya has amended the Climate Change Act, 2016 to facilitate voluntary cooperation under Article 6 of the Paris Agreement. The Cabinet Secretary for Environment, Climate Change & Forestry appointed the National Environment Management Authority (NEMA) as the Designated National Authority for market mechanisms under Article 6. NEMA will maintain the National Carbon Registry, provide information to project proponents, monitor registered carbon projects, and issue letters of approval. This appointment reflects Kenya's ongoing efforts to achieve its climate change objectives.
Comprehensive Guide to Kenyan Law for Not-for-Profit Organizations
The Public Benefits Organizations Act 2013 (PBO Act) came into force on 14 May 2024, replacing the Non-Governmental Organizations Coordination Act 1990. It establishes the Public Benefit Organizations Regulatory Authority, the National Federation of Public Benefit Organizations, and the Public Benefit Organizations Disputes Tribunal. The Act defines public benefit organizations (PBOs), outlines registration requirements, and provides benefits such as tax exemptions and preferential procurement treatment. Transitional provisions require NGOs registered before 14 May 2024 to re-register within one year, while exempt organizations must apply within three months.
'Kenya's Legal Framework for Green Hydrogen Investment: Carbon Credits, Policy Roadmap'
Kenya's legal framework for green hydrogen investment is governed by the Public-Private Partnerships Act 2021, the Green Hydrogen Strategy Roadmap (2023-2032), and EPRA's Guidelines on Green Hydrogen. The PP Act enables private sector participation in infrastructure projects, while the Strategy Roadmap outlines a phased approach to develop domestic demand and production capacity. The Guidelines establish a one-stop-shop for approvals, require feasibility studies, and offer incentives based on project designation. Investors must comply with land, water, and permitting requirements.
Navigating the Landscape of Kenya's Carbon Credit Trading: Perspectives on Regulation and Market Dynamics
Kenya's carbon credit market is growing, driven by natural resources and sustainability commitments, but faces regulatory challenges. Parliament is developing legislation such as the Climate Change (Amendment) Act, 2023 and draft Carbon Market Regulations to balance investment with environmental integrity and community inclusion. Concerns include greenwashing and the dominance of multinational corporations, which may crowd out smaller players. The draft Kenya Green Finance Taxonomy provides a classification system to assess environmental sustainability of projects.
Kenya's Emergence as a Hyperscale Data Centre Hub: ICT and Information Opportunities
The article examines Kenya's potential to become a hyperscale data centre hub, noting that while South Africa currently has the only operational hyperscale data centre in Africa, Kenya's growing digital infrastructure, submarine cable connectivity, abundant renewable energy, and government digital agenda create favourable conditions. Under the Kenya Information and Communications Act, data centre operators may require a licence from the Communications Authority. The article highlights recent developments such as the Olkaria EcoCloud Data Centre and a planned 1 GW data centre in Naivasha, and concludes that Kenya is well-positioned to attract hyperscale investments.
Kenya's Draft National E-Mobility Policy: Paving the Way for Green Electric Cars
Kenya's Ministry of Roads and Transport has published a Draft National E-Mobility Policy aiming to reduce carbon emissions by transitioning to electric vehicles (EVs). The policy outlines seven objectives, including developing a legal framework, promoting local EV manufacturing, expanding charging infrastructure, enhancing technical skills, providing tax incentives, supporting socioeconomic inclusion, and financing road maintenance. Implementation could lower Kenya's fossil fuel dependence, increase electricity coverage, reduce costs, and create investment opportunities.
The New Kenya Roads (Roadside Stations) Regulations: Ensuring the Right to a Clean and Healthy Environment
The Kenya Roads (Roadside Stations) Regulations, 2023, were developed following an Environment and Land Court case that directed the government to draft a policy for sanitation facilities along roads. The regulations provide for the construction and operation of roadside stations on national roads, mandating free sanitation, restrooms, emergency services, and compliance with health and safety standards. They also offer incentives such as tax breaks and discounted permits to encourage private participation. The regulations aim to uphold the constitutional right to a clean and healthy environment for road users.
Evolution of E-Commerce in Kenya
The article outlines the legal framework for e-commerce in Kenya, including the Data Protection Act (2019), Consumer Protection Act, Kenya Information and Communications Act, Income Tax Act (with digital service tax at 1.5%), Computer Misuse and Cybercrimes Act, and the National E-Commerce Strategy (2023). These laws regulate data handling, consumer rights, contract validity, taxation, and cybercrime. The article notes that while the framework is comprehensive, there is room for further strengthening of laws and regulations.
Regulating Carbon Markets in Kenya: An Overview of the Draft Carbon Markets Regulations
Kenya's draft Climate Change (Carbon Markets) Regulations of 2023 establish a regulatory framework for carbon credit projects following the Climate Change (Amendment) Act of 2023. The regulations designate roles to the Cabinet Secretary and Principal Secretary, create institutions like the Designated National Authority and National Carbon Registry, and impose obligations on project proponents including environmental impact assessments and community involvement. They set procedures for project approval, require social contributions of 25-40% of earnings for projects on public or community land, and provide a two-year transition period for existing projects to comply. The Ministry of Environment favors the regulations over a business-as-usual approach, citing benefits for accountability and community benefits.