Gaming opportunities for key players in Kenya
For the longest time, gaming in Kenya was marked by physical casinos and betting shops (gambling). These were characterised by stringent regulations, high operational costs, and limited technology infrastructure. With the development of technology and legal infrastructure, gaming has expanded into games both on and off the internet. In 2023, there was an increase in spending on mobile games, with reports stating that up to Ksh52 billion had been spent by consumers. It is important to note that this survey does not include taxation, online gambling, and the betting industry. For the avoidance of doubt, this article seeks to cover gaming apps and online games and not betting and online gambling of sports.
Most gaming in Kenya is mobile-first gaming. No complex equipment is needed, just access to the internet and a smartphone. Many of the games played are created in Western countries, so they are based on Western settings. Western companies supply the technology used, but Kenyans promote the games themselves. Examples of these games include The Last of Us, Call of Duty, and FIFA, among others.
There is a perceived risk that gaming companies knowingly access users’ data as some games have an automatic opt-in that gamers may not be aware of. This risk also spreads to cyberbullying, online predators, malware, and webcam anxiety. Furthermore, the Kenya National Bureau of Statistics (KNBS) has noted that the number of devices being handled by children (between ages 3-4) is about 44,777. Therefore, it is paramount that upcoming gaming companies ensure that the games they produce adhere to the data protection laws of Kenya and ensure safety, especially for their target audience. An example of a Kenyan gaming company is Usiku Games, which partnered with the Communication Authority of Kenya (CA) to launch Cyber Soljas, a children’s game. The game was tailored towards creating awareness of cybercrimes, cyberbullying, identity theft, cat phishing and fake news.
Culture is also important in developing gaming content. To succeed in the gaming industry, one needs to be aware of the cultural context in which they are setting up. For example, Rubik’s Digital developed the online game Ajua. Its popularity is based on the nostalgia of the game played with stones in shallow holes. A similar version was created to fit the Uganda and Tanzania markets. This ensures the preservation of the culture, heritage, and history of the communities that inspire these games.
Gaming companies must develop apps/games that can fit the already available technology in Kenya. This increases the variety of users who can afford access to them. Targeting low-income earners has allowed for a steady growth in e-sports and online gaming in Kenya. This is due to gaming equipment being expensive. There are very few individuals who can afford a PS5, Xbox, etc., and creating games only fit for such machinery will deeply disenfranchise the people who may be interested in playing them. On a brighter note, the use of smartphones in Kenya is on the rise with the ease of access of even second-hand phones being facilitated everywhere.
Further, one needs to ensure that gaming companies have the proper licenses. Unlike gambling, where the Betting Control and Licensing Board does the licensing, gaming companies are regulated by the CA. This is due to the distribution and subscription of content, such as online gaming platforms, mobile gaming apps, or broadcasting gaming-related content. Therefore, one will need a Content Service Provider (CSP).
Gaming companies could engage in e-sports. This could be achieved through platforms like Twitch, which is increasingly gaining traction. This could create opportunities for income for the gaming companies and their signed players. They could also hold local tournaments to increase their exposure to new audiences to the games. Organising competitive gaming events can attract sponsorships from international gaming companies looking to reach young audiences. Building community hubs and providing training for local teams can also foster talent and increase participation.
There is also a need to create games that further education in Kenya. This is especially true because there are many instances of uneven access to education. Gaming companies, in collaboration with government initiatives, can create games that teach skills or promote awareness of social issues (like health, environment, or finance).
Additionally, the startup ecosystem in Kenya is growing, with more investors looking at technology and gaming. Engaging venture capitalists and angel investors focused on technology can lead to funding for gaming projects. Networking through technology hubs and incubators can help forge valuable connections. Further, banks can partner with these companies to create games tailored towards financial literacy. This would increase knowledge of the financial products they offer and increase the number of customers that could potentially seek to engage banks.
Lastly, there is room for collaboration with local telecommunications companies. There are telecommunications organisations in Kenya willing to partner with gaming companies. This could potentially facilitate promotions, bundled offers, and improved payment systems for gaming. Collaborative marketing strategies can also expand reach to a wider audience.
In conclusion, the gaming industry in Kenya is more than just entertainment; it is a thriving business with immense potential for Africa’s youth. It offers a vibrant landscape for innovation and growth. By leveraging local culture, technology, and community engagement, stakeholders can create impactful and profitable gaming experiences that resonate with Kenyan audiences. Adapting to the unique regulatory and cultural context will be essential for success.