National Lottery Act

Section 1. Short title Section This Act may be cited as the National Lottery Act, 2023.

Section 2. Interpretation Section In this Act, unless the context otherwise requires— “Board” means the National Lottery Board constituted in accordance with section 4 ; “Cabinet Secretary” means the Cabinet Secretary for the time being responsible for matters relating to the National Lottery ; “child” means an individual who has not attained the age of eighteen years; “Fund” means the National Lottery Fund established by section 44 ; “good causes” means charitable causes or events for charity set out in section 22 (3); “National Lottery” means the National Lottery established by section 22 ; “operator” means the entity procured by the Board to run the National Lottery in accordance with section 24 ; “prize” means the prize awarded to a winner of a lottery or a prize promotion; “regulatory authority” means the government agency established by the law to regulate the gambling sector; “ticket” in relation to any lottery or game of chance, includes any written or electronic document evidencing the claim of a person to participate in a chance of a lottery or a game of chance; and “winning” includes a prize of any kind.

Section 3. Objects and purpose of the Act Section establish a National Lottery for the pooling of additional resources to be directed to good causes ; and

Section 4. Establishment of theNational LotteryBoard Section 4(1) There is established a Board to be known as the National Lottery Board . Section 4(2)(a) taking, purchasing or otherwise acquiring, holding, charging and disposing of movable and immovable property; Section 4(2)(b) borrowing money; Section 4(2)(c) entering into contracts; Section 4(2)(d) suing and being sued; and Section 4(2)(e) doing or performing all such other acts necessary for the performance of its functions under this Act which may be lawfully done or performed by a body corporate. Section 4(3) The headquarters of the Board shall be in Nairobi, but the Board may establish offices at such other places as may be necessary for the execution of its mandate.

Section 5. Composition of theBoard Section 5(1)(a) a Chairperson appointed by the President; Section 5(1)(b) the Principal Secretary National Treasury or his or her representative, appointed in writing; Section 5(1)(c) the Principal Secretary in the State Department for the time being responsible for matters relating to the National Lottery or his or her representative, appointed in writing; Section 5(1)(d) the Attorney-General or his or her representative, appointed in writing; Section 5(1)(e) an Advocate of the High Court of Kenya; Section 5(1)(e)(i) an Advocate of the High Court of Kenya; Section 5(1)(e)(ii) a practising Certified Public Accountant; Section 5(1)(e)(iii) a representative of persons with disability; and Section 5(1)(e)(iv) a representative of the faith-based organizations. Section 5(1)(f) the Chief Executive Officer who shall be an ex-officio member of the Board . Section 5(2) In appointing the members of the Board under subsection (1)(e), the Cabinet Secretary shall ensure that not more than two-thirds of the members are of the same gender, shall observe the principle of regional and ethnic balance and shall have due regard to the principle of fair competition an...

Section 6. Vacancy in theBoard Section 6(1)(a) dies; Section 6(1)(b) in case of the Chairperson, to the President; and Section 6(1)(b)(i) in case of the Chairperson, to the President; and Section 6(1)(b)(ii) in case of a member, to the Cabinet Secretary ; Section 6(1)(c) is convicted of an offence and sentenced to imprisonment for a term exceeding six months without the option of a fine; Section 6(1)(d) has been absent from three consecutive meetings of the Board without a notice to the Chairperson; or Section 6(1)(e) is removed in accordance with subsection (2). Section 6(2)(a) violation of the Constitution or any other law; Section 6(2)(b) gross misconduct, whether in the performance of the functions of the office of a member or otherwise; Section 6(2)(c) physical or mental incapacity to perform the functions of the office of a member; Section 6(2)(d) incompetence; or Section 6(2)(e) bankruptcy. Section 6(3) The Cabinet Secretary shall ensure that any vacancy in the Board is filled as soon as practicable in accordance with the provisions of the Act.

Section 7. Functions of theBoard Section 7(1)(a) supervise, control and monitor the operations of National Lottery or National Lottery operator ; Section 7(1)(b) put in place measures to prevent fraud in the conduct of the National Lottery ; Section 7(1)(c) make recommendations to the Cabinet Secretary for the formulation of policies for the conduct of National Lottery ; Section 7(1)(d) advise the Cabinet Secretary on Regulations which would be required for the effective operation of the National Lottery ; Section 7(1)(e) advise the National Government on the National Lottery ; and Section 7(1)(f) perform such other functions as the Cabinet Secretary may assign to the Board . Section 7(2) The Board may on its own or through legal agents or in collaboration, partnership or joint venture with any person, society, association or corporate entity or through procurement of an entity or person operate the National Lottery in accordance with this Act. Section 7(3) Subject to subsection (2), losses that may arise from the running of a national lottery during such collaboration, partnership or joint venture shall not be compensated for by the State or from the National Lottery Fund .

Section 8. Powers of theBoard Section 8(1) The Board shall have the powers necessary for the performance of its functions under this Act. Section 8(2)(a) manage, control and administer the assets of the Board in such manner and for such purposes as best promotes the purpose for which the Board is established; Section 8(2)(b) receive any gifts, grants, donations or endowments made to the Board or any other monies in respect of the Board and make disbursements therefrom in accordance with the provisions of this Act; Section 8(2)(c) open and operate a bank account with the approval of the National Treasury; Section 8(2)(d) conduct such investigations as may be necessary for the enforcement of this Act; Section 8(2)(e) inquire into any complaint against an operator ; and Section 8(2)(f) offer services to any person upon such terms as the Board may determine from time to time.

Section 9. Conduct of business and affairs of theBoard Section 9(1) The procedure for the conduct of the business and affairs of the Board shall be as provided in the Schedule. Section 9(2) Subject to the Schedule, the Board shall regulate its own procedure.

Section 10. Committees of theBoard Section 10(1) The Board may establish such committees as it may consider necessary to assist it in the performance of its functions and the exercise of any of its powers. Section 10(2) Despite the provisions of sub-section (1), not more than four committees may be established under this section.

Section 11. Remuneration of the members of theBoard Section The members of the Board shall be paid such allowances and disbursements for such expenses as may be approved by the Cabinet Secretary on the advice of the Salaries and Remuneration Commission.

Section 12. Chief Executive Officer Section 12(1) There shall be a Chief Executive Officer of the Board who shall be appointed by the Board through an open, transparent and competitive process, on such terms and conditions of service as the Board may determine. Section 12(2)(a) is a citizen of Kenya; Section 12(2)(b) holds a degree from a university recognized in Kenya; Section 12(2)(c) has at least ten years’ experience in senior management in a public or a private institution; and Section 12(2)(d) satisfies the requirements of Chapter Six of the Constitution. Section 12(3)(a) the custodian of all the records of the Board ; Section 12(3)(b) responsible for the day-to-day management of the affairs and staff of the Board ; Section 12(3)(c) responsible for the management and maintenance of efficiency of the staff of the Board ; and Section 12(3)(d) executing decisions of the Board ; Section 12(3)(d)(i) executing decisions of the Board ; Section 12(3)(d)(ii) facilitating, coordinating and ensuring execution of the mandate of the Board ; Section 12(3)(d)(iii) preparing and submitting for approval, by the Board , programmes of work for the achievement of the mandate of the Board ; and S...

Section 13. Corporation Secretary Section 13(1) The Board shall competitively recruit a person qualified to serve as the Corporation Secretary. Section 13(2)(a) provide guidance to the Board on the duties, responsibilities and powers of the Board ; Section 13(2)(b) ensure that the Board follows its procedures and complies with the respective laws and regulations; Section 13(2)(c) prepare the work plans of the Board and assist the Chairperson to organise the activities of the Board including meetings, agenda of meetings, issuing notices to other members of the Board , circulating Board papers before meetings, keeping a record of attendance at meetings; Section 13(2)(d) take and keep the minutes of the meetings of the Board , and circulating the minutes to the members of the Board ; Section 13(2)(e) keep a record of the usage of the seal of the Board , and prepare the annual meetings of the Board ; Section 13(2)(f) keep a record of the appointment letters, notices of appointment and the written acceptance of appointment by members of the Board ; Section 13(2)(g) keep a record of conflicts of interest declared by each member of the Board ; and Section 13(2)(h) perform such other dutie...

Section 14. Staff of theBoard Section The Board may appoint such number of professional, technical and administrative staff as it may consider necessary for the discharge of the functions of the Board , on such terms and conditions as the Board may determine on the advice of the Salaries and Remuneration Commission.

Section 15. Delegation of powers of theBoard Section The Board may by resolution either generally or in any particular case delegate to any committee of the Board or to any member, officer, employee or agent of the Board , the exercise of any of the powers or the performance of any of the functions or duties of the Board under this Act or under any other written law.

Section 16. Seal of theBoard Section 16(1) The common seal of the Board shall be kept in the custody of the Corporation Secretary and shall not be used except upon the order of the Board . Section 16(2) The common seal of the Board shall be authenticated by the signature of the Chairperson of the Board or the Chief Executive Officer: Provided that the Board shall, in absence of either the Chairperson or the Chief Executive Officer, in any particular matter nominate one member of the Board to authenticate the seal of the Board on behalf of either the Chairperson or the Chief Executive Officer. Section 16(3) The common seal of the Board shall, when affixed to a document and duly authenticated, be judicially and officially noticed and unless the contrary is proven, any order or authorization by the Board under this section shall be presumed to have been duly given.

Section 17. Funds of theBoard Section such monies as may be appropriated by Parliament for purposes of the Board ;

Section 18. Financial year Section The financial year of the Board shall be the period of twelve months ending on the thirtieth June in every year.

Section 19. Annual estimates Section 19(1) At least three months before the commencement of each financial year, the Board shall cause to be prepared estimates of the revenue and expenditure of the Board for that year. Section 19(2)(a) payment of salaries, allowances and other charges in respect of the staff of the Board ; Section 19(2)(b) payment of pensions, gratuities and other charges in respect of former staff of the Board ; Section 19(2)(c) proper maintenance of the buildings and grounds of the Board ; Section 19(2)(d) maintenance, repair and replacement of the equipment and other property of the Board ; Section 19(2)(e) payment of allowances of the members of the Board and the members of the Board ; and Section 19(2)(f) creation of such reserve funds to meet future or contingent liabilities in respect of retirement benefits, insurance, replacement of buildings or equipment, or in respect of such other matters as the Board may deem fit.

Section 20. Books of accounts Section 20(1) The Board shall cause to be kept all proper books and records of accounts relating to the income, expenditure, assets and liabilities of the Board . Section 20(2) The accounts of the Board shall be prepared and audited in accordance with the Public Finance Management Act ( Cap. 412A ) and Public Audit Act ( Cap. 412B ).

Section 21. Reports of theBoard Section 21(1) The Board shall prepare quarterly and annual financial and non-financial reports in a format prescribed by the Public Sector Accounting Standards Board and submit the same to the National Treasury and the Auditor General. Section 21(2) The Board shall continuously and on a regular basis monitor and report on its performance and on the performance of the operators on a quarterly basis, with a summary of performance reported through annual report of the Board on the basis of a clear outcome-based performance framework based on the policy developed by the national government.

Section 22. Establishment of theNational Lottery Section 22(1) There is established a National Lottery to be operated within the Republic of Kenya. Section 22(2) The National Lottery shall be conducted for the purpose of raising resources for the nation towards good causes in Kenya and for any other purposes provided in this Act. Section 22(3)(a) providing care and protection for the physically or mentally afflicted, the aged, orphans and vulnerable children; Section 22(3)(a)(i) providing care and protection for the physically or mentally afflicted, the aged, orphans and vulnerable children; Section 22(3)(a)(ii) promote social development including universal healthcare; Section 22(3)(a)(iii) facilitate the protection and rehabilitation of vulnerable or problem gamblers; Section 22(3)(a)(iv) promote the protection and conservation of the environment, efforts towards sustainable development or support animal welfare initiatives; Section 22(3)(a)(v) aid to the needy, such as through the provision of food, shelter, or healthcare services; and Section 22(3)(a)(vi) advancing religious or spiritual purposes, through the promotion of interfaith dialogue; Section 22(3)(b) support for the de...

Section 23. Exemption Section Despite any other provision of this Act, the provisions of any written law relating to the regulation of public lotteries for charitable purposes, lotteries for charitable, sporting and other purposes and lotteries incidental to entertainment shall not apply to the National Lottery .

Section 24. Procurement of anoperator Section 24(1) Subject to section 7 (2), the Board may procure an operator to run the National Lottery on its behalf in accordance with Article 227 of the Constitution and the Public Procurement and Asset Disposal Act ( Cap. 412C ), and the Board may require payment for any document that may be required for the procurement process. Section 24(2)(a) has appropriate knowledge or experience to conduct a national lottery in accordance with this Act and any condition imposed on the licence; Section 24(2)(b) has the necessary financial and other resources to conduct the lottery; Section 24(2)(c) is not a state or public officer, or the holder of a political office; and Section 24(2)(d) is a fit and proper person to conduct the lottery. Section 24(3)(a) has contravened the provisions of any law, in Kenya or elsewhere, designed for the protection of members of the public against financial loss due to dishonesty, incompetence, or malpractice by persons engaged in gambling; Section 24(3)(a)(i) has contravened the provisions of any law, in Kenya or elsewhere, designed for the protection of members of the public against financial loss due to dishonesty, inc...

Section 25. Licensing theNational Lottery Section 25(1) The regulatory authority shall, upon application in the prescribed form and payment of the prescribed fee, issue one licence authorizing the Board or the person procured under section 24 to operate a National Lottery subject to such conditions as it may deem fit to impose. Section 25(2)(a) the applicant has the ability to commence operations not more than six months from the date of issuance of a licence; Section 25(2)(b) the applicant has appropriate knowledge or experience to conduct a national lottery in accordance with this Act and any condition imposed on the licence; Section 25(2)(c) the applicant has the necessary financial and other resources to conduct the lottery; Section 25(2)(d) no direct or indirect financial interest exists on any applicant by a person who is the holder of a political office; and Section 25(2)(e) the applicant, its directors and shareholders are fit and proper persons to conduct the lottery. Section 25(3)(a) conduct the National Lottery subject to the standards, norms and requirements set by the regulatory authority , all other applicable laws and the conditions attached to the licence; and Secti...

Section 26. Duration of licence Section 26(1)(a) the regulatory authority may, in a case where the licence has been granted for seven years, and at least two years before the expiry of that licence, extend that licence for further period not exceeding three years which together with the initial period for which that licence was granted, shall not exceed ten years; and Section 26(1)(b) the operator shall have no rights or legitimate expectations in respect of an extension of the period of validity of the licence other than the rights afforded by this section. Section 26(2)(a) inability of the Board to get a suitable operator during the period of the extension; Section 26(2)(b) demonstration by the existing operator of its failure to fully recoup the investment in the lottery; or Section 26(2)(c) the need to recover any period of suspension of a licence occasioned by revocation proceedings conducted under this Act in instances where the outcome of the proceedings was in favour of the operator .

Section 27. Obligations of theoperator Section ensure that such requirements as the regulatory authority may from time to time, determine or impose are complied with;

Section 28. Overriding responsibilities Section 28(1)(a) ensure that the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety and in accordance with the relevant law; and Section 28(1)(b) ensure that the interests of every participant in a lottery that forms part of the National Lottery are protected. Section 28(2)(a) ensure that the net proceeds of the National Lottery are maximised; and Section 28(2)(b) adopt strategic and inclusive frameworks for responsible gambling and the conduct of a national lottery.

Section 29. Variation of conditions of theNational Lotterylicence Section 29(1)(a) with the consent of the operator ; or Section 29(1)(b) a variation is provided for in this Act or to the extent provided for in the licence; and Section 29(1)(b)(i) a variation is provided for in this Act or to the extent provided for in the licence; and Section 29(1)(b)(ii) the operator has been given a reasonable opportunity to make representation to the regulatory authority in respect of the intended variation and the representation is considered by the regulatory authority as insufficient. Section 29(2) The regulatory authority may, in varying the conditions of a licence impose new conditions or reduce the conditions to the licence. Section 29(3) Where the regulatory authority intends to vary a licence under subsection (1)(b), the regulatory authority shall serve the operator with the notice of the intended variation specifying the grounds for such variation and require the operator to, within fourteen days of service of the notice, give reasons why the licence should not be varied. Section 29(4) A notice under subsection (3) shall be served not less than twenty-one days before the date of the in...

Section 30. Enforcement of conditions of aNational Lotterylicence Section 30(1)(a) a person has contravened any condition of a National Lottery licence which cannot be remedied; or Section 30(1)(b) there is a reasonable likelihood that the contravention in a licence is of a continuous nature, Section 30(2) The liability of the operator to pay any money under this Act shall not be affected by a licence ceasing to be valid for any reason.

Section 31. Revocation of aNational Lotterylicence Section in its opinion, the operator or his or her representative has grossly violated the provisions of this Act;

Section 32. Notice of revocation of aNational Lotterylicence Section 32(1) Where the regulatory authority is satisfied that there are grounds for the revocation of the National Lottery licence, the regulatory authority shall notify the Board and the operator , in writing of the existence of such grounds and shall require the operator to furnish reasons, within fourteen days of service of the notice why the licence should not be revoked. Section 32(2) Where the operator fails to give reasons within the period stated, the licence shall cease to be valid. Section 32(3)(a) decide whether or not to revoke the licence; or Section 32(3)(b) call upon the operator to appear before it on a specified date to make oral representations in support of any written representations made by the operator or to answer any questions which the regulatory authority , as the case may be, regarding such written representations, thereafter the regulatory authority shall determine whether or not to revoke the licence. Section 32(4) Where a licence for the National Lottery ceases to be valid under this section, the regulatory authority shall forthwith inform the operator and the Board , in writing, of the date...

Section 33. Suspension of aNational Lotterylicence Section 33(1) The regulatory authority may order the suspension of a National Lottery licence upon giving notice and giving the operator an opportunity to be heard. Section 33(2) The procedure under section 32 shall apply with the necessary modifications when the regulatory authority is considering the suspension of a licence. Section 33(3) Where the regulatory authority suspends a licence under subsection (1), it shall forthwith inform the public through a notice in the Gazette , and two newspapers of nationwide circulation or any media of national coverage. Section 33(4) Where a licence for the National Lottery ceases to be valid under subsection (1), the regulatory authority shall inform the operator and the Board in writing the date upon which the licence was suspended. Section 33(5) The suspension of a licence shall not prejudice any liability or obligation incurred under or in relation to the licence prior to its suspension.

Section 34.National Lotterygames Section 34(1) The operator may with the approval of the Board and regulatory authority , conduct such games as it may consider appropriate for purposes of the National Lottery . Section 34(2) The regulatory authority in consultation with the Board shall prescribe guidelines, policies and procedures for the conduct of games comprising the National Lottery . Section 34(3)(a) the type and number of games to be conducted by the operator ; Section 34(3)(b) the method and location of setting up or validating winning tickets; Section 34(3)(c) the manner of payment of prizes to holders of winning tickets; Section 34(3)(d) the frequency of games and draws or determination of winning tickets; Section 34(3)(e) the method to be used in selling tickets, which may include the use of electronic or mechanical devices; Section 34(3)(f) the conduct of draws and determination of winners of each game; Section 34(3)(g) requirements governing lottery tickets; and Section 34(3)(h) any other guideline necessary to ensure the efficient and effective operation of national lottery games.

Section 35. Disclosure of odds Section 35(1) The operator shall print all lottery tickets bearing its approved imprint and logo. Section 35(2)(a) a serial number; Section 35(2)(b) a draw number; Section 35(2)(c) a draw date; and Section 35(2)(d) a designated space for the signature. Section 35(3) The regulatory authority shall issue guidelines with respect to the purchase of tickets. Section 35(4) The sale of a national lottery ticket shall be the responsibility of the operator and it may after consultation with the regulatory authority , authorize such suitably qualified persons as it may determine to act as its agents for the sale of the National Lottery tickets. Section 35(5) The operator shall authorize agents subject to such terms and conditions as may be determined by the operator with the approval of the regulatory authority . Section 35(6) The operator shall in consultation with the Board determine the form and prize of a lottery ticket sold under this Act. Section 35(7) A person, other than the operator , who sells, offers or exposes for sale or invites an offer to buy or possess for sale a national lottery ticket , commits an offence and shall be liable upon conviction to...

Section 36. Persons prohibited from participating inNational Lottery Section 36(1)(a) a child ; Section 36(1)(b) a director, agent or employee of the operator ; Section 36(1)(c) a member or employee of the Board or the regulatory authority ; Section 36(1)(d) a person who prints national lottery tickets or an employee of such a person, or a director of such company; Section 36(1)(e) a person who supplies computers or other electronic devices of any kind or parts for the same, or equipment or programming or instructions for use, or who operates, maintains or repairs any such devices used by the operator ; Section 36(1)(f) an illegal immigrant; or Section 36(1)(g) any other person prohibited under any other law Section 36(2) Despite subsection (1), persons who are not citizens or residents of Kenya shall only participate in games which have instant draws. Section 36(3) The prohibition under subsection (1) shall cease to apply to a person specified in paragraphs (b), (c), (d) and (e) after the expiry of two years from the period their directorship, agency or employment with the operator , the Board or the regulatory authority Section 36(4) For the purposes of ensuring that a child does...

Section 37. Offences relating toNational Lotterytickets Section 37(1) Any person who allows a person prohibited to participate in unauthorized lottery commits an offence and shall be liable upon conviction to a fine not exceeding five million shillings or imprisonment for a term not exceeding five years or to both. Section 37(2)(a) a ticket in respect of which the offence is committed shall not be entered in the lottery draw, and if it is so entered and is drawn as the winning ticket , the owner of such a ticket shall not be entitled to any prize in respect of the ticket ; and Section 37(2)(b) where a prize is awarded in the lottery to the owner of such a ticket , the prize shall be returned to the operator within one month after receipt. Section 37(3) Where a prize to which subsection (2)(b) applies is not returned as required, such a prize or an amount of money equal to its value may be recovered by the operator through a civil suit.

Section 38. Disclosure by agents Section if a partnership, all the general and limited partners;

Section 39. Draws Section 39(1) All draws and prize draws shall be open to members of the public. Section 39(2) The draws for all games comprising of a lottery shall be conducted at such times and at such places as may be determined by the operator with the approval of the regulatory authority . Section 39(3) The number or alphabet letter and permutation of numbers or alphabet letters drawn that constitute winnings of National Lottery shall be determined by the regulatory authority and published in the Gazette , a newspaper or other medium of information of national coverage. Section 39(4) An officer of the regulatory authority shall supervise the selection of winning entries in all draws. Section 39(5) Any equipment used in a public draw to select a winning number, alphabet letter or entry for a prize shall be examined and tested by the regulatory authority together with an internal auditor of the operator or a designated representative prior to and after each public draw. Section 39(6) The operator shall adopt rules, policies and procedures to conduct fair and equitable draws and establish a system for verifying validity of tickets presented for the awarding of prizes.

Section 40. Payment ofprize Section 40(1) A prize shall not be awarded upon a ticket purchased or sold in violation of this Act. Section 40(2) The operator shall stand discharged from all liability to winners upon payment of prizes in accordance with the terms and conditions of a national lottery. Section 40(3) The operator may provide for payment of prizes by agents where prizes are of such amount as the operator may specify whether or not the agents sold the winning tickets.

Section 41. Prizes and tickets Section 41(1)(a) determined by the Board , and Section 41(1)(b) published in the Gazette , a newspaper or other medium of information with national coverage. Section 41(2) The operator shall pay the winners of the National Lottery their prize monies within seven days of the draw and at the times and places determined by the Board and published in the Gazette , a newspaper or other medium of information with national coverage. Section 41(3) A prize that is not claimed within five years shall be presumed to be abandoned and shall be surrendered to the Unclaimed Financial Assets Authority. Section 41(4) An operator shall keep and maintain a register of prizes surrendered under subsection (3). Section 41(5) The right to a prize shall not be assignable but prizes may be paid to the administrator of a deceased winner’s estate. Section 41(6) A ticket shall be deemed to be owned by a person whose signature or mark appears on it, and if no such signature or mark appears, by the bearer of the ticket . Section 41(7) The operator shall not be responsible for any lost or stolen tickets. Section 41(8) A person who loses a National Lottery ticket shall report the lo...

Section 42. Audit of theNational Lottery Section 42(1) The regulatory authority may from time to time appoint a suitably qualified person to audit the conduct of the National Lottery and report to the regulatory authority . Section 42(2)(a) the operator ’s management and procedures; Section 42(2)(b) the system including ecosystem for selecting winning tickets and the methods employed to prevent fraud or manipulation; Section 42(2)(c) handling or processing and the selection of winning tickets; and Section 42(2)(c)(i) handling or processing and the selection of winning tickets; and Section 42(2)(c)(ii) installation, operation, maintenance, or repair of computers or other electronic devices, or devices of any kind used for the purpose of a lottery or the supervision; and Section 42(2)(d) the compliance with this Act and any regulations made thereunder in relation to a National Lottery . Section 42(3)(a) at such intervals as the regulatory authority may determine in relation to any of the matters specified in subsection (2); and Section 42(3)(b) from time to time in relation to any matter relating to a lottery which the person considers should be reported to the regulatory authority ....

Section 43. Apportionment of the proceeds of theNational Lottery Section 43(1)(a) prizes and tax for prizes; Section 43(1)(b) operator ’s profit, tax and operating costs; Section 43(1)(c) the regulatory authority ’s operational and administrative costs; and Section 43(1)(d) the operational and administrative costs of the Board . Section 43(2) The amount payable for operational and administrative costs under subsection (1)(c) and (d) shall not exceed three per centum of the total gross revenue proceeds of the National Lottery for each institution and shall be approved by the Cabinet Secretary responsible for finance. Section 43(3) The operator shall pay monies due to the Fund under this section on a weekly basis or at such other time as the Board may determine whichever is earlier. Section 43(4) The Cabinet Secretary for finance may upon consultation with the Cabinet Secretary and the Board determine the operational and administrative costs under subsection (1)(c) and (d) above based on the preceding years gross revenue performance of the National Lottery .

Section 44. Establishment of theNational LotteryFund Section 44(1) There is hereby established a fund to be known as the National Lottery Fund . Section 44(2) The object of the Fund shall be to retain, and disburse the proceeds of the National Lottery in such manner as may be prescribed by this Act. Section 44(3)(a) sums paid to the Fund under section 43 ; Section 44(3)(b) interest from the investment of money standing to the credit of the Fund ; Section 44(3)(c) accrued earnings from investments; Section 44(3)(d) such monies or assets as may accrue to or vest in the Fund in the course of the exercise of its powers or the performance of its functions under this Act; and Section 44(3)(e) all monies from any other source provided for or donated or lent to the Board . Section 44(4) The proceeds of the Fund shall be apportioned to the good causes set out in section 22 (3) by the Board, in accordance with relevant legislation and guidelines, in consultation with the Cabinet Secretary for approval by the Cabinet Secretary for finance for the succeeding year at least six months before the commencement of the next financial year of government. Section 44(5) The Cabinet Secretary may make r...

Section 45. Administration of theFund Section 45(1) The Board shall be responsible for the general administration of the Fund . Section 45(2)(a) approve the opening and closing of the bank accounts of the Fund in accordance to the provisions of the Public Finance Management Act ( Cap. 412A ); Section 45(2)(b) determine, in accordance with relevant legislation and guidelines, the amount of money that will be allocated to various programmes and projects to promote good causes as provided for under section 22 (3); Section 45(2)(c) approve investments of funds not required immediately in Government securities; Section 45(2)(d) propose for approval by the Cabinet Secretary allocations to be channelled through the government agencies; Section 45(2)(e) propose grants with conditions or without conditions to be allocated to county governments in consultation with the Cabinet Secretary , the Cabinet Secretary for the National Treasury, and the Council of Governors including providing of matching funds, co-financing within government, specific programmes and projects to be funded by the grants; Section 45(2)(f) propose for approval by the Cabinet Secretary , statutory bodies or non-statutory...

Section 46. Annual programmes and projects Section 46(1)(a) the projected amount of money available for allocation in the succeeding fiscal year; Section 46(1)(b) the proposed per centum limits to be allocated to the various good causes under each eligible sector of the economy; Section 46(1)(c) the criteria to be applied in making allocations to various state and non-state actors based on the approved policy for allocation of resources under the Fund ; Section 46(1)(d) administration costs of the Fund ; Section 46(1)(d)(i) administration costs of the Fund ; Section 46(1)(d)(ii) various programmes and projects under each sector; Section 46(1)(d)(iii) amount to be left in the Fund for unforeseen needs; Section 46(1)(d)(iv) allocation for sharing equitable share of revenue raised from the National Lottery ; Section 46(1)(d)(v) capacity building for receiving entities for each fiscal year to promote transparency and accountability of the resources received from the Fund ; or Section 46(1)(d)(vi) vetting out which allocations will be done through normal appropriations or outside the normal appropriation; and Section 46(1)(e) the framework for monitoring, evaluation and reporting on the...

Section 47. Administrator of theFund Section 47(1) The Chief Executive Officer of the Board shall be the Administrator of the Fund . Section 47(2) The Administrator of the Fund , shall be subject to the Board , be responsible for the day to day running of the affairs of the Fund . Section 47(3)(a) open and operate such bank accounts approved by the Board and the National Treasury; Section 47(3)(b) supervise and control the day-to-day administration of the Fund ; Section 47(3)(c) in consultation with the Board , develop such policies as may be necessary for the attainment of the objects of the Fund ; Section 47(3)(d) consult with the Board on matters relating to the administration of the Fund ; Section 47(3)(e) outsource services and enter into and sign commercial contracts or agreements in furtherance of the objects of the Fund , with the approval of the Board ; Section 47(3)(f) cause to be kept books of accounts and other books and records in relation to the Fund of all activities and undertakings financed from the Fund ; Section 47(3)(g) be the custodian of the assets and property of the Fund ; Section 47(3)(h) open a register of all beneficiaries who have received grants from th...

Section 48. Beneficiaries of theFund Section 48(1) The funds from the Fund shall be accessible to both state and non-state actors for the purposes of undertaking projects and programmes for good causes . Section 48(2) A person or institution shall not be eligible for funding from the Fund if the person or institution is not tax compliant. Section 48(3)(a) is duly registered in Kenya; Section 48(3)(b) has a local presence; and Section 48(3)(c) has evidence of current or ongoing interventions with significant impact to citizen and communities of Kenya. Section 48(4) An institution whose officials have not met any applicable prior clearance requirements shall not be eligible to receive funding from the Fund .

Section 49. Financial year of theFund Section The financial year of the Fund shall be the period of twelve months ending on the thirtieth day of June in each year.

Section 50. Investment of funds of theFund Section The Administrator may with the approval of the Board , invest any of the funds of the Fund , which are not immediately required for its purposes in accordance with the provisions of the Public Finance Management Act ( Cap. 412A ).