Kenya’s leading telecom operator, Safaricom PLC, has uncovered money laundering schemes linked to betting companies using its M-PESA mobile money platform, following the deployment of new artificial intelligence (AI) tools designed to detect and flag suspicious financial activity.
In its 2025 Sustainability Report, Safaricom revealed that its upgraded anti-money laundering (AML) system had successfully identified “money laundering through betting platforms” and “suspicious international money transfers.” The company stated that it has deployed real-time transaction monitoring, machine-learning detection systems, and sanctions screening to ensure compliance with regulatory frameworks. “Compliance with Ultimate Beneficial Ownership verification and regulatory reporting requirements remains a priority,” the report noted.
This revelation comes as Kenya’s betting industry experiences explosive growth, fueled by a tech-savvy youth population and the accessibility of mobile-based betting platforms. Kenyans are estimated to wager over KES 350 billion ($2.7 billion) annually, with KES 160 billion ($1.2 billion) flowing through M-PESA, making it a lucrative target for financial crime.
AI Monitoring and Financial Surveillance
Safaricom’s AI-driven monitoring framework is now capable of tracking millions of transactions in real time, helping to uncover potential money laundering, fraud, and sanctions violations faster than before. M-PESA currently handles over 10 million transactions daily, worth an estimated $200 million.
Although Safaricom’s report did not name specific betting firms, its findings echo long-standing concerns raised by the Central Bank of Kenya and other regulators about the risk of illicit financial flows within the gaming industry.
Online betting giants like SportPesa, Betika, and Betin have fueled Kenya’s betting revolution over the past decade, enabling punters to place wagers on global sporting events. However, this digitization has also opened new loopholes that criminals can exploit.
Betting and Dirty Money
According to government assessments, while the risk of money laundering among individual bettors remains low, the threat is significant among betting company owners, particularly foreign ones. Investigations suggest that some operators mix gambling proceeds with illicit funds from crimes such as corruption, drug trafficking, and cyber fraud, then withdraw them as legitimate winnings.
Authorities estimate the betting sector’s combined annual revenue at KES 204 billion, calling it a “perfect market for criminals seeking to launder dirty money.” Officials have found that some criminals channel illegal funds into betting wallets, wager a small amount, and cash out the rest as ‘clean’ money, often transferring it offshore — a form of capital flight disguised as gaming payouts.
Mega jackpot winnings have also come under scrutiny, with regulators warning that large prize payments can serve as convenient conduits for laundering millions under the guise of legitimate gaming success.
Compliance and Regulatory Crackdown
The Kenyan government has in recent years intensified compliance enforcement within the betting and financial sectors. Dozens of betting companies have faced license suspensions, tax investigations, and AML compliance reviews. Firms are now required to maintain robust customer verification systems (KYC) and report large or unusual transactions to the Financial Reporting Centre (FRC).
Safaricom’s disclosure signals a new level of vigilance within Kenya’s financial ecosystem. “Failure to comply with AML obligations could jeopardize our license to operate,” the telco warned in its report, underscoring the company’s commitment to regulatory cooperation and financial integrity.
The Bigger Picture: Youth, Betting, and Risk
Betting remains one of Kenya’s most vibrant digital industries, driven by the aspirations of a young, mobile-first population. With unemployment among youth hovering above 65%, many turn to betting as both entertainment and potential income. But as the industry expands, so do concerns over addiction, debt, and financial crime.
Safaricom’s AI-led discovery has reignited debate over how to balance innovation and regulation. The company’s technology-first approach highlights the potential of AI in protecting digital finance ecosystems, not just in Kenya but across Africa.
As the AFCON 2027 preparations and digital payments expansion continue, the integration of AI-driven compliance systems may well become the norm for financial service providers seeking to safeguard transparency in an increasingly digitized economy.
