Kenya's online betting sector expanded to a $2 billion annual market by 2018, driven primarily by mobile payment infrastructure. The growth was enabled by M-Pesa, which processed the vast majority of transactions across the country.
Mobile-First Transaction Growth
The market recorded a hundredfold increase over the five-year period preceding 2018. Mobile devices accounted for 96 percent of all wagering activity, while traditional banking and card networks saw minimal adoption. M-Pesa functioned as the central transaction layer for operators and users alike.
Operator Infrastructure and Licensing
Several companies leveraged this payment system to establish market presence. SportPesa utilized M-Pesa integration to fund Premier League club sponsorships before departing the market in 2019 following a tax disagreement. Betika and MozzartBet also developed their platforms around the same mobile money infrastructure. Direct connection to M-Pesa requires a local Kenyan betting license. Companies without this authorization must route transactions through third-party aggregators, which reduces profit margins and limits direct customer engagement.
