A State agency tasked with overseeing lotteries in Kenya will be fined Sh1 million for advertisements not withdrawn within seven days after lapse of a lottery competition.
New gambling regulations say officials of the National Lottery Board (NLB) would also face a jail term of up to six months for such breaches.
“The National Lottery Board shall remove any billboard, poster or an outdoor electronic advert relating to the prize competition seven days after the closure of the promotion,” the regulations read.
“Where the National Lottery Board fails to remove or cease any advert after the duration required, the National Lottery Board commits an offence and shall be liable upon conviction to a fine not exceeding one million shillings or to imprisonment for a term not exceeding six months or to both.”
The ads can be on billboards, aired on television or radio, or done digitally and must all be sanctioned by the sector regulator.
Penalising the NLB marks a shift given that the State has traditionally fined firms who breach laws or regulations governing their specific industries.
Under the lotteries law, NLB can apply for a licence to operate a national lottery directly or through a private operator. The agency targets to roll out the first such lottery by April 2027.
NLB was formed in 2023 to supervise, control and monitor the lottery operations in Kenya. It can, however, apply for clearance by the Gaming Regulatory Authority of Kenya (GRAK) to set up a lottery prize competition.
The application must include reasons why the NLB is undertaking the competition and proof of gambling capital needed to pay the prize money.
NLB has nine members, including a chairperson who is an appointee of the president.
Other members are the CEO, Principal Secretary of Treasury, the Attorney General and Principal Secretary for Gender, Culture and Children Services and four other members.
The regulations come as Kenya finalises plans to set up its first state-backed lottery where a portion of the ticket revenues will be used to finance national causes such as in the health, sports or education sectors.
Currently, there is no national lottery in Kenya, but NLB recently tapped two firms to guide the process of picking an operator of the national lottery.
“The National Lottery shall be conducted for the purpose of raising resources for the nation towards good causes in Kenya and for any other purposes provided in this Act,” the law on lotteries reads.
Kenyans currently participate in commercial or charitable games such as the Kenya Charity Sweepstake and My Lotto Kenya.
Data shows that spending on advertising within the betting and gaming sector rose by 42.7 percent to Sh187million in the three months ended December 2025, marking a recovery for the industry, which is still reeling from the shocks of stricter rules by the Gaming Regulatory Authority of Kenya.
The spending between October and December 2025 marked a significant rebound compared to the previous quarter, when it dipped by 89 percent to Sh131 million, compared to Sh1.2 billion recorded in the preceding quarter—hit by stricter regulations from the regulator earlier in June 2025 aimed at promoting responsible gambling and protecting minors.
