Safaricom, Kenya’s largest telco, has uncovered cases of money laundering linked to betting firms using its M-PESA mobile money platform, following the deployment of new artificial intelligence tools to monitor suspicious transactions.
In its 2025 Sustainability Report, the telco said its upgraded anti-money laundering (AML) system “detected money laundering through betting platforms” and “flagged suspicious international money transfers.”
“We deployed real-time monitoring, machine-learning detection systems, and sanctions screening to identify suspicious activities,” the report said. “Compliance with Ultimate Beneficial Ownership verification and regulatory reporting requirements remains a priority.”
The findings come as Kenya’s betting industry continues to grow, driven by youth enthusiasm for sports and the increasing use of mobile payments. Punters in Kenya are estimated to spend over KES 350 billion ($2.7 billion) annually, with more than KES 160 billion ($1.2 billion) flowing through M-PESA, making the platform a prime target for illicit activity.
Safaricom AI monitoring
Safaricom said its AI-driven monitoring systems now track millions of daily transactions in real-time, enabling it to flag potential cases of money laundering, fraud, and sanctions breaches more efficiently. M-PESA processes over 10 million transactions daily with an estimated value of $200 million.
While Safaricom did not name specific betting firms, the findings align with concerns raised in past government reports about the role of Kenya’s gaming industry in facilitating illicit financial flows.
Kenya’s betting industry has grown rapidly over the past decade, with online platforms such as SportPesa, Betika, and Betin enabling punters to place bets on global sporting events. But the same digital convenience has created new loopholes for criminals.
Betting and dirty money
According to previous government assessments, the potential for money laundering through individual bettors is low, but the risk is high among betting firm owners, many of whom are foreign. Authorities believe some companies commingle gambling proceeds with funds from crimes such as corruption, drug trafficking, and fraud, before cashing them out as legitimate winnings.
The government estimates the gaming sector’s combined revenue at KES 204 billion, describing it as a “perfect market for criminals seeking to launder dirty money.”
One official assessment found that criminals could “feed their illicit money into betting wallets, bet a small share of the cash before cashing out the bulk as winnings,” often transferring the proceeds overseas, a form of capital flight.
Mega jackpot payouts have been identified as potential avenues for laundering large amounts of illicit cash into and out of the country.
Compliance push
The government has repeatedly cracked down on betting companies over licensing, tax compliance, and suspected money laundering. Several operators have had their licenses revoked in the past, while others have been required to improve their reporting of significant transactions and customer verification.
Safaricom’s latest disclosure suggests financial institutions and mobile operators are tightening their compliance controls in response to regulatory scrutiny. The company said it is committed to full AML compliance and cooperation with regulators.
“Failure to comply with AML obligations could jeopardise our licence to operate,” it said in the report.
Betting remains one of Kenya’s most visible digital industries, driven by sports enthusiasm and a young, mobile-first population. Over 65% of Kenyan youth are unemployed or underemployed, and betting often serves as both entertainment and a means of income.
But with growing concerns about debt, addiction, and financial crime, regulators are torn between promoting innovation and curbing social and economic risks. Safaricom’s revelation of money laundering in the multi-billion-dollar industry now puts the issue back in the spotlight.
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