The Betting Explosion in Kenya: Is There Reason to Worry?

Betting. Betting. Betting. Everywhere you go in Kenya these days betting seems to be the main activity being undertaken. Men are betting. Women are betting. Children are betting. Everybody is betting and the explosion has taken over Kenya by storm.

Young people in Kenya are now in a betting frenzy. Some are losing money and some are winning some money but at the end of the whole process, the winner seems to be the betting company. Kenya has now emerged as a viable market for betting companies who are now making billions of money from the Kenyan young generation that is eager to get some money without dropping a sweat.

The following are some of the betting firms that have found their way in Kenya and some are still coming up:

• MCheza
• Sportpesa
• Betin
• Betika
• Elite Bet
• Betway
• Kenya Sports Bet
• Eazi Bet
• Betpawa Kenya
• Lotto
• Pambazuka

Pambazuka is the youngest among them all for it was only launched a day ago in an event that was ruled with excitement, pomp and colour. What is an economic impact of all these firms in Kenya? What are some of the effects that these firms will have on Kenyans? Are these effects negative or positive?

The majority of the people who are taking part in the betting expedition in Kenya are those from the lower class with some from the middle class. The middle class and the lower class form almost 90 percent of Kenya’s population. The majority of these people, especially in the lower class live in abject poverty. They are desperate and eager to want to get easy money. Betting is one way of getting that easy money without dropping a sweat. Betting companies in Kenya have realized this and have made their bets as low as possible so as to accommodate everyone in the society. With as low as five shillings, one can place a bet and wait to win some money.

Read: Growing Betting Culture Among the Kenyan Youth

If not well regulated, Kenya is going to have a betting society. A society that might not believe in working and earning from a sweat but just sitting and waiting to earn some money. The fact that those taking part in this betting expedition are the youth is even more threatening. “If there are no jobs in Kenya and you can just sit at home, place your one hundred shillings for a bet and get some one thousand back, what is the problem with that? For me that is far much better than stealing,” Geoffrey Shikunga, a student in one of the local universities tells me as he shifts his eyes back to his phone, busy, betting.

The betting industry, however, on a larger scale, has had a great impact on some individuals as well as the economy in general.

Making of millionaires

The betting industry has created some instant millionaires in the country. A firm like Sportpesa has awarded some of its winners who made to the jackpot as much as more than 20 million shillings. This has helped in developing the economy to some extend especially for the few who have invested the money and employed some people in the process. Some have also been winning thousands of shillings and uplifting their lives in the process. Money from betting, however, needs a sober head that is always planning for very few have become rich from the process. This is because some get that money without planning and, therefore, spend it without planning.

Bringing in revenue

The betting industry is one of the largest revenue contributor in Kenya at the moment. Economic analysts have projected that by the year 2018, the gaming industry would have contributed close to 31 billion dollars on the economy. This means that the betting industry is also helping in developing the other sectors of the economy through the payment of revenue.

Supporting the sporting industry

Some gaming companies like Sportpesa have invested heavily in the sport industry. The firm has been sponsoring some teams as well as taking part in the bettering of the sporting infrastructure in the country.

The betting explosion has taken over Kenya more strongly than ever before. Is this good for the economy or is it only making matters worse? Can the betting industry be used to benefit the economy and those who take part in it?