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Kenya launches search for firrst national lottery operator to fund community projects

By HER staff reporter

The National Lottery Board of Kenya has officially set the wheels in motion for the establishment of the nation’s first National Lottery Operator. This milestone initiative is specifically designed to channel gaming revenues into socio-economic initiatives and uplift communities across the country.

Speaking at a media briefing in Nairobi, National Lottery Board Chairperson Dr. Farida Karoney announced the appointment of a multidisciplinary consortium led by RSM Eastern Africa, in partnership with Sweden-based QLOT Consulting, as the Transaction Advisor to guide the procurement process.

The consortium was selected following an open international competitive bidding process conducted under the provisions of the Public Procurement and Asset Disposal Act, 2015. Utilizing the Quality and Cost-Based Selection methodology, the joint bid emerged as the most responsive and highest-ranked submission. RSM Eastern Africa contributes extensive institutional knowledge and expertise in public sector transaction advisory within Kenya. Meanwhile, QLOT Consulting, an associate member of the World Lottery Association, provides international benchmarking derived from managing complex lottery procurements across global jurisdictions.

Dr. Karoney outlined that the advisory team will assist the Board through every critical operational phase, including legal frameworks, financial modeling, cybersecurity standards, transaction structuring, operator onboarding, and final launch readiness. Additionally, the contract incorporates a mandatory structured knowledge-transfer initiative aimed at building internal capacity and ensuring long-term technical expertise is retained within the Board.

“The appointment of a credible, multidisciplinary Transaction Advisor is a defining step in building a National Lottery that Kenyans can trust,” Dr. Karoney stated. “It is a statement of intent that our National Lottery will be structured transparently, governed responsibly, and built to international best practice, with every shilling raised channeled toward good causes that uplift communities across the country.”

Established under the National Lottery Act, No. 20 of 2023, the National Lottery Board holds a dedicated mandate to institute, oversee, and safeguard Kenya’s National Lottery, contract its commercial operator, and manage the resulting fund. Broader sector oversight and licensing will be handled separately by the Gambling Regulatory Authority under the Gambling Control Act, No. 14 of 2025. This dual-entity architecture establishes clear separation of duties: the operator remains contractually accountable to the Board while maintaining regulatory compliance under the broader authority.

The primary objective of the National Lottery centers on its social contribution mandate. Once winner payouts and essential operational costs are accounted for, all remaining proceeds will be deposited directly into the National Lottery Fund. By law, these funds are strictly reserved for socio-economic and public benefit programs, including sports development, arts and national heritage preservation, emergency disaster response, health and education funding, and economic empowerment projects targeting women and youth.

Furthermore, responsible gaming mechanics are being integrated into the core foundational design rather than applied retroactively. Mandated safeguards will require the chosen operator to implement mandatory age verification, flexible self-exclusion features, robust spend controls, transparent odds disclosures, and strict advertising standards. With the transaction advisory team fully engaged, the Board is now structuring a competitive procurement phase, emphasizing that regulatory compliance and operational rigour will take precedence over speed.

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