The iGaming industry is experiencing historic growth in Africa, with Kenya being one of the key areas of expansion. With the market currently worth approximately $40 million, analysts predict there is still room for a significant increase in revenue in the coming years.
The most significant factor in pushing the industry forward is undoubtedly the mobile sector. Most new players are signing up and betting online via their smartphones, which has made it far easier for consumers to access services.
However, it isn’t just the smartphone that is driving growth. The situation is a little more complicated, with the ‘perfect storm’ created via a combination of circumstances.
Sports Betting Laws in Kenya
Most consumers are not aware of this, but Kenya is one of the longest-running betting markets on the planet. The regulation was introduced as far back as 1966 when the Act of Parliament Chapter 131 was successfully passed.
Kenya was also one of the first countries in Africa to regulate online gambling, with legislation being introduced over a decade ago in 2011. At present, Kenya offers consumers one of the most flexible and unrestricted gambling markets on the continent.
This strong regulatory framework puts Kenya in a pole position for further expansion in the coming years. Players and iGaming providers alike will not be hampered by regulation, as the country is already primed for growth.
Growth Requires Reliable Providers
Some countries struggle to meet market demand due to a lack of providers. Or rather, reliable companies that can deliver the level of service expected by modern consumers.
Kenya, however, has a pool of iGaming companies that consistently deliver a high service standard. The local market can provide suitable alternatives to the traditional names, such as William Hill or Ladbrokes in the United Kingdom, for example.
For instance, Kenyan consumers now also have access to competitive registration bonuses, which allow players to take advantage of industry-leading offers.
Companies such as promotion.co.ke, for example, illustrate how companies put forward bonuses specifically geared towards local players. For example, companies quote offers in shillings, rather than US dollars or the British pound.
Mobile Penetration
One of the most obvious drivers for the growth of the betting industry in Kenya is mobile penetration. In 2006, there were only 19.5 cellular subscriptions per 100 inhabitants. In 2020, this number multiplied to 114.2, meaning that the average citizen has more than a single subscription.
Further, smartphones are now far more affordable than they were even just a few years ago. The original iPhone, for example, was prohibitively expensive for most Kenyans, but recent releases such as the Tecno F2 and the INFINIX Smart provide far more affordable options.
This level of mobile penetration, which is rapidly increasing across the entire continent, has given access to a country where traditional forms of gambling were already incredibly popular. As a result, experts predict that the value of the industry will more than double in the next five years.
Mobile Internet Speed
In previous years, tourists in Kenya were frustrated by the lack of cell phone coverage. However, this reputation is now inaccurate, with the average mobile internet speed surpassing that of the United States!
At 13.7 megabits per second, Kenya currently stands in the top 20 for mobile internet speed. This equates to approximately double that of the global average. With modern iGaming options consistently developing more advanced gameplay, Kenyan players are well equipped with the technological requirements to deal with the latest releases.
Payment Gateways
Having access to mobile technology is the first step, but it is effectively insignificant if players are not able to load their accounts due to a lack of payment options. Contrary to the United States or Europe, for example, access to a bank account is not common. It is estimated that less than 50% of Kenyans are currently unbanked. Whilst this number is increasing slowly, Kenyans do have access to other options.
In fact, Kenya is a leader when it comes to overall access to financial services, with 83% of citizens having access to some form of banking. Companies such as M-Pesa, for example, offer mobile banking solutions that have helped to revolutionize access for the average Kenyan.
Companies have clocked that Kenyan players need payment options on their terms. With over half of the country having access to a mobile money account, the iGaming industry worked to expand its traditional payment methods.
Further Expansion Projected
Experts predict that Africa will become a significant player in the market, particularly as it has a keen gambling population, increasing access to the required technology (mobile penetration in particular), and economic growth that is spurring available disposable income.
The iGaming industry in Africa has taken tremendous steps in the last few years, but this is just the beginning of the trajectory. It is still a sleeping giant, playing catch-up to what is an already mature industry on other continents.
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