Kenya’s leading telecommunications provider, Safaricom, has identified instances of money laundering connected to betting companies utilizing its M-PESA mobile money service. This discovery follows the implementation of advanced artificial intelligence technologies designed to detect suspicious financial activities.
In its 2025 Sustainability Report, Safaricom revealed that its enhanced anti-money laundering (AML) framework successfully uncovered laundering activities linked to betting platforms and flagged questionable international fund transfers.
“We have integrated real-time surveillance, machine learning algorithms, and sanctions screening mechanisms to pinpoint irregular transactions,” the report stated. “Ensuring compliance with Ultimate Beneficial Ownership verification and adhering to regulatory reporting standards remains a critical focus.”
The revelations coincide with the rapid expansion of Kenya’s betting sector, fueled by the passion of young sports enthusiasts and the widespread adoption of mobile payment solutions. It is estimated that Kenyan bettors wager over KES 350 billion ($2.7 billion) annually, with more than KES 160 billion ($1.2 billion) transacted via M-PESA, positioning the platform as a significant target for illicit financial schemes.
Safaricom’s AI-Powered Surveillance
Safaricom’s AI-enhanced monitoring infrastructure now scrutinizes millions of transactions every day in real-time, allowing for more effective identification of potential money laundering, fraud, and sanctions violations. M-PESA handles upwards of 10 million daily transactions, with a total value approximating $200 million.
Although the company did not disclose the names of specific betting operators involved, these findings echo concerns previously highlighted in governmental reports regarding the gaming industry’s role in facilitating unlawful financial flows.
Over the last decade, Kenya’s betting market has surged, with platforms like SportPesa, Betika, and Betin enabling users to place bets on international sports events. However, this digital convenience has inadvertently opened doors for criminal exploitation.
Betting as a Channel for Illicit Funds
Government analyses suggest that while individual bettors pose a relatively low risk for money laundering, the threat is considerably higher among betting company proprietors, many of whom are foreign nationals. Authorities suspect that some operators mix proceeds from illegal activities such as corruption, drug trafficking, and fraud with gambling revenues, subsequently legitimizing these funds as winnings.
The government values the gaming sector’s total revenue at KES 204 billion, describing it as an “ideal environment for criminals aiming to launder illicit money.”
One official report highlighted a common laundering method where criminals inject illicit funds into betting accounts, wager a small portion, and then withdraw the majority as purported winnings, often transferring these funds abroad, thereby facilitating capital flight.
Large jackpot payouts have been identified as potential mechanisms for moving substantial sums of illicit cash into and out of the country.
Strengthening Regulatory Compliance
Kenyan authorities have intensified enforcement actions against betting firms concerning licensing, tax obligations, and suspected money laundering. Several operators have faced license revocations, while others have been mandated to enhance their transaction reporting and customer due diligence processes.
Safaricom’s recent announcement indicates that financial institutions and mobile network operators are bolstering their compliance frameworks in response to increased regulatory oversight. The company reaffirmed its dedication to full AML adherence and collaboration with regulatory bodies.
“Non-compliance with AML regulations could threaten our operational license,” the report emphasized.
Betting remains one of Kenya’s most prominent digital sectors, propelled by a sports-loving, predominantly young, and mobile-centric population. With over 65% of Kenyan youth unemployed or underemployed, betting often serves as both a form of entertainment and a potential income source.
Nonetheless, rising concerns about gambling-related debt, addiction, and financial crimes place regulators in a challenging position, balancing the promotion of technological innovation with the need to mitigate social and economic harms. Safaricom’s exposure of money laundering within this multi-billion-dollar industry has reignited public and regulatory focus on these issues.
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