Interior Cabinet Secretary Fred Matiang'i announced that all betting firms operating in Kenya risk having their licenses not renewed if they don't pay all their tax arrears.
The CS was speaking on Monday when he met the Betting and Licensing Control Board where he asked the chair not to renew the licenses come July 1st.
"Effective 1st July all licenses will stand cancelled except for those who would have complied and paid their taxes," CS Matiang'i said.
CS Matiang'i also said that the betting sector will get an overhaul from government since the industry was taking a toll on young people.
Regulating gambling industry
"We would be lying to you if we do not point out that the Betting Licensing Control regime in our country must change... we are going to turn it inside out," the Interior CS stated.
"We have the unfortunate situation where We in Kenya are leading on the population of our young people are involved in betting," he added.
The CS also pointed out that 54 percent of the young people who are involved in betting were from low income areas.
He called for the regulation of the industry and told the stakeholders that the government will not stand by as the sector eats into the future of the young people.
Highest number of betting youth
CS Matiang'i also revealed that he is expecting a status report from the BLCB which will profile all the agencies involved in the betting industry.
The CS also addressed the effects of gambling noting the rates of suicide that have been reported.
Kenya has the highest number of betting youth, according to a recent GeoPoll rapid survey carried out among youth between the ages of 17-35 in Uganda, Tanzania, Ghana, Nigeria, South Africa and Kenya.