Change of guard at Gambling Authority as Karimi takes over as new Director General

A new chapter has opened at the Gambling Regulatory Authority (GRA) following the appointment and official takeover of Peter Maina Karimi as Director General, a transition many hope will usher in sweeping reforms in Kenya’s rapidly expanding gambling industry.

Karimi takes over from outgoing Director General Peter Mbugi at a time when the country’s betting sector—now a multi-billion-shilling industry—faces growing scrutiny over allegations of fraud, money laundering and weak regulatory oversight.

The leadership change also comes in the wake of the dissolution of the defunct Betting Control and Licensing Board (BCLB), which was replaced by GRA following the enactment of the Gambling Regulatory Authority Act aimed at tightening supervision of the sector.

However, questions are already emerging about whether the new regulator will succeed where its predecessor struggled.

For years, critics accused the defunct BCLB of failing to effectively police betting operators despite the explosive growth of sports betting platforms, online casinos and digital gaming products.

Kenya’s gambling market has grown dramatically over the past decade, driven largely by mobile technology, internet penetration and aggressive marketing by betting firms.

While the sector has become a significant source of tax revenue and employment, it has also raised alarm over the social and economic impact of gambling, particularly among young people.

Regulators have in the past been confronted with several high-profile cases involving alleged fraud and financial misconduct linked to betting platforms.

In 2019, authorities suspended licenses of several major operators including SportPesa, Betin and BetYetu over tax compliance disputes and concerns about regulatory violations.

Financial watchdogs have also warned that some betting platforms have been exploited as channels for money laundering, where illicit funds are cycled through gambling accounts to obscure their origin.

Investigations by the Financial Reporting Centre (FRC) have previously flagged suspicious transactions involving betting accounts that moved millions of shillings in short periods.

In another widely publicised case, authorities probed several online betting firms suspected of facilitating irregular financial flows linked to foreign-owned operators who allegedly moved profits offshore while underreporting revenues locally.

Despite these concerns, enforcement has often been criticised as weak and inconsistent. Illegal operators frequently continue to run unlicensed platforms, while licensed firms have been accused of opaque operations, predatory advertising and inadequate safeguards to protect consumers from addiction and financial harm.

Critics say the former regulator increasingly appeared to function more as a revenue collector than a watchdog, prioritising tax receipts from the booming industry while failing to curb malpractice.

Karimi now faces the difficult task of rebuilding trust in the regulatory system while ensuring the sector operates responsibly.

Speaking during the handover ceremony, Karimi pledged to introduce stricter oversight mechanisms and restore integrity to the industry.

“The gambling industry has grown significantly and requires strong regulatory frameworks to ensure it operates responsibly and within the law,” he said.

He added that the authority will review licensing frameworks, strengthen compliance monitoring and work closely with other government agencies to crack down on illegal operators and financial crimes linked to betting.

Among the reforms expected under the new leadership are enhanced digital monitoring of betting platforms, stronger consumer protection measures and improved collaboration with financial regulators and law enforcement agencies.

Karimi also emphasised the need to promote responsible gambling while protecting vulnerable groups from exploitation, particularly the youth who have increasingly become the largest demographic participating in sports betting.

Industry stakeholders are now closely watching the new leadership at GRA, hoping the authority will strike a balance between encouraging legitimate investment and ensuring stricter regulation.