Kenya Act or statute

Parliament of Kenya

National Lottery Act, 2023

Jurisdiction: Kenya
Structure: 52 provisions
Citation: Act No. 20 of 2023
Dates: As at 12 Jan 2024

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Dates: As at 12 Jan 2024

Source attribution: Source: Kenya Law

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“This Act may be cited as the National Lottery Act, 2023.”

This Act may be cited as the National Lottery Act, 2023. Section 2 provides definitions of key terms used in the Act (for example “Board”, “Cabinet Secretary”, “child”, “Fund”, “good causes”, “National Lottery”, “operator”, “prize”, “regulatory authority”, “ticket”, and “winning”). Establishes a National Lottery to pool additional resources to be directed to good causes. The Board may set up committees to help perform its functions, but no more than four committees may be established under this section. Members of the Board are entitled to be paid allowances and disbursements for expenses, subject to approval by the Cabinet Secretary on the advice of the Salaries and Remuneration Commission.

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PRELIMINARY - 1. Short title

This Act may be cited as the National Lottery Act, 2023.

Section 1

THE NATIONAL LOTTERY BOARD - 20. Books of accounts

The Board must keep proper books and records of accounts relating to its income, expenditure, assets and liabilities.

Section 20

THE NATIONAL LOTTERY - 27. Obligations of theoperator

Theoperator must ensure compliance with requirements that the regulatory authority may determine or impose from time to time.

Section 27

CONDUCT OF A NATIONAL LOTTERY - 39. Draws

Section 39

THE NATIONAL LOTTERY FUND - 52. Offence of misappropriation and penalty

Misappropriating the Fund's monies or assets (or assisting others to do so) is an offence punishable on conviction by a fine up to ten million shillings, imprisonment up to ten years, or both.

Section 52

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Showing 52 of 52 provisions

Provision 40Offence 6Commencement 4Short title

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

This Act may be cited as the National Lottery Act, 2023.

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

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationInterpretation

Section 2 provides definitions of key terms used in the Act (for example “Board”, “Cabinet Secretary”, “child”, “Fund”, “good causes”, “National Lottery”, “operator”, “prize”, “regulatory authority”, “ticket”, and “winning”).

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 2Verify source

§ 3PRELIMINARY - 3. Objects and purpose of the ActProvision

Establishes a National Lottery to pool additional resources to be directed to good causes.

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 3Verify source

Part II

THE NATIONAL LOTTERY BOARD

§ 10THE NATIONAL LOTTERY BOARD - 10. Committees of theBoardProvision

The Board may set up committees to help perform its functions, but no more than four committees may be established under this section.

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 10Verify source

§ 11THE NATIONAL LOTTERY BOARD - 11. Remuneration of the members of theBoardProvision

Members of the Board are entitled to be paid allowances and disbursements for expenses, subject to approval by the Cabinet Secretary on the advice of the Salaries and Remuneration Commission.

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 11Verify source

§ 12THE NATIONAL LOTTERY BOARD - 12. Chief Executive OfficerProvision

The Board must appoint a Chief Executive Officer through an open, transparent and competitive process; the CEO must meet specified qualifications, perform listed management duties, and serves a three-year term eligible for one re-appointment.

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 Section 12(3)(d)(iv) the performance of such other duties as may be assigned by the Board or any written law. Section 12(4) The Chief Executive Officer shall be appointed for a term of three years and shall be eligible for re-appointment for one further term of three years.

Section 12Verify source

§ 13THE NATIONAL LOTTERY BOARD - 13. Corporation SecretaryProvision

The Board must competitively recruit a person qualified to serve as the Corporation Secretary; the Corporation Secretary must perform duties set out by the Board including providing guidance on duties, ensuring the Board follows procedures and complies with laws and regulations, preparing work plans and assisting the Chairperson to organise Board activities and meetings, issuing and circulating notices and papers, keeping records (attendance, seal usage, appointment documents, conflicts of interest), taking and circulating minutes, preparing annual meetings, and performing other duties the Board may direct.

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 duties as the Board may direct.

Section 13Verify source

§ 14THE NATIONAL LOTTERY BOARD - 14. Staff of theBoardProvision

The Board may appoint professional, technical and administrative staff it considers necessary and may determine their terms and conditions on the advice of the Salaries and Remuneration Commission.

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 14Verify source

§ 15THE NATIONAL LOTTERY BOARD - 15. Delegation of powers of theBoardProvision

The Board may, by resolution, delegate its powers, functions or duties to a committee or to any member, officer, employee or agent of the Board.

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 15Verify source

§ 16THE NATIONAL LOTTERY BOARD - 16. Seal of theBoardProvision

The common seal must be kept by the Corporation Secretary; it must be authenticated by the Chairperson or the Chief Executive Officer (and the Board must nominate a member to authenticate in their absence); the seal must not be used except on the Board's order; when affixed and authenticated it is judicially and officially noticed.

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 16Verify source

§ 17THE NATIONAL LOTTERY BOARD - 17. Funds of theBoardProvision

Parliament may appropriate monies for the purposes of the Board.

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

Section 17Verify source

§ 18THE NATIONAL LOTTERY BOARD - 18. Financial yearProvision

The Board's financial year is the twelve‑month period ending on 30 June each year.

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 18Verify source

§ 19THE NATIONAL LOTTERY BOARD - 19. Annual estimatesCommencement

The Board must prepare annual revenue and expenditure estimates at least three months before each financial year and include specified items (salaries, pensions, maintenance, repairs, allowances, reserve funds).

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 19Verify source

§ 20THE NATIONAL LOTTERY BOARD - 20. Books of accountsProvision

The Board must keep proper books and records of accounts relating to its income, expenditure, assets and liabilities.

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 20Verify source

§ 21THE NATIONAL LOTTERY BOARD - 21. Reports of theBoardProvision

The Board must prepare quarterly and annual financial and non-financial reports in the format prescribed by the Public Sector Accounting Standards Board and submit them to the National Treasury and the Auditor General; the Board must also continuously monitor and report performance quarterly and include a summary in its annual report following an outcome-based performance framework developed by the national government.

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 21Verify source

§ 4THE NATIONAL LOTTERY BOARD - 4. Establishment of theNational LotteryBoardProvision

Establishes the National Lottery Board and grants it powers including acquiring and disposing of property, borrowing money, entering contracts, suing and being sued, and performing other acts necessary to carry out its functions; headquarters are in Nairobi with ability to open other offices.

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 4Verify source

§ 5THE NATIONAL LOTTERY BOARD - 5. Composition of theBoardOffence

Section sets composition of the Board, who appoints some members, appointment safeguards to ensure gender and regional balance, qualifications for members, disqualifications, CEO as ex‑officio member, and term length with one reappointment.

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 and merit as the basis of appointments. Section 5(3)(a) is a Kenyan citizen; Section 5(3)(b) holds a bachelor’s degree from a university recognized in Kenya; Section 5(3)(c) has a minimum of ten years’ working experience in a relevant field; Section 5(3)(d) has not served in the same entity as an employee in the preceding five years; Section 5(3)(e) meets the requirements of Chapter Six of the Constitution; and Section 5(3)(f) has submitted to the Cabinet Secretary a written declaration stating that the person does not have any interests in the gambling sector or an interest in a business or enterprise that may conflict or interfere with the proper performance of the duties of a member of the Board . Section 5(4)(a) is an undischarged bankrupt; Section 5(4)(b) has been convicted of a criminal offence and sentenced to imprisonment for a term exceeding six months; Section 5(4)(c) at the time of appointment holds a political office; Section 5(4)(d) has previously been removed from a public office on account of misconduct or any other lawful reasons; or Section 5(4)(e) in the last three years immediately preceding the appointment, had personal direct or indirect commercial interest in the gambling sector. Section 5(5) A member of the Board shall hold office for a term of three years and shall be eligible for reappointment for one further term of three years.

Section 5Verify source

§ 6THE NATIONAL LOTTERY BOARD - 6. Vacancy in theBoardOffence

The Cabinet Secretary must ensure any vacancy on the Board is filled as soon as practicable in accordance with the Act.

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 6Verify source

§ 7THE NATIONAL LOTTERY BOARD - 7. Functions of theBoardProvision

Section 7 assigns functions to the Board (supervision, fraud prevention, policy recommendations, advising the Cabinet Secretary and National Government, and other tasks), allows the Board to operate the National Lottery (including by collaboration or procurement), and provides that losses from such collaborations are not to be compensated by the State or the National Lottery Fund.

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 7Verify source

§ 8THE NATIONAL LOTTERY BOARD - 8. Powers of theBoardProvision

The Board shall have the powers necessary for the performance of its functions under this Act.

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 8Verify source

§ 9THE NATIONAL LOTTERY BOARD - 9. Conduct of business and affairs of theBoardProvision

Subject to the Schedule, the Board must regulate its own procedure; the procedure for conducting the Board's business shall be as provided in the Schedule.

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 9Verify source

Part III

THE NATIONAL LOTTERY

§ 22THE NATIONAL LOTTERY - 22. Establishment of theNational LotteryProvision

Establishes a National Lottery for raising resources for specified good causes; the Board may operate additional games or enter partnerships (with Cabinet Secretary consultation) but losses from those activities must not be compensated by the State or the National Lottery Fund.

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 development of small businesses or other economic development initiatives; Section 22(3)(b)(i) support for the development of small businesses or other economic development initiatives; Section 22(3)(b)(ii) support education, including, among others, through the provision of scholarships or educational resources, including libraries, laboratories; Section 22(3)(b)(iii) promotion of scientific research, innovation, and technological development; and Section 22(3)(b)(iv) support for health and medical research, including through the funding of clinics or medical facilities; Section 22(3)(c) support for national teams to participate in regional and international events; Section 22(3)(c)(i) support for national teams to participate in regional and international events; Section 22(3)(c)(ii) financing the development of sports and recreation facilities including stadia, gymnasia, buildings, tracks; Section 22(3)(c)(iii) enhancing support and access to funding for sportspersons and sports organizations to enable their participation in sporting events and competitions; Section 22(3)(c)(iv) facilitation for the acquisition and provision of equipment to sports and recreation facilities; Section 22(3)(c)(v) support for the identification, nurturing and development of talent in sports and arts; Section 22(3)(c)(vi) facilitating training and capacity building programmes for persons involved in sports and recreation, creative arts, artistic production, contemporary and cultural practitioners; Section 22(3)(c)(vii) facilitating the identification, development and capacity building of technical personnel and sports support personnel involved in sports and recreation; Section 22(3)(c)(viii) support for the development, marketing, and promotion of artistic production of contemporary or cultural goods and services; Section 22(3)(c)(ix) support for linkages with domestic, regional, and international markets for sports, artistic productions and contemporary or cultural goods and services; Section 22(3)(c)(x) facilitating the exhibition and promotion of contemporary or cultural artistic production of goods and services for national identity and pride; Section 22(3)(c)(xi) financing the acquisition, development, and preservation of, among others, heritage sites, cultural centres, national monuments, tangible and intangible heritage and culture and heritage equipment and tools; Section 22(3)(c)(xii) facilitate innovation, research and documentation in arts, culture and the creative industry, sports, and social development; and Section 22(3)(c)(xiii) promotion of culture, arts, and heritage, such as through the support of museums or cultural events. Section 22(3)(d) strategic initiatives, projects, or programmes developed by the National Government, county governments, non-governmental organisations, that are unique and distinctive, with high and visible impacts, including being key to positioning the country regionally or internationally economically, socially, or otherwise; Section 22(3)(d)(i) strategic initiatives, projects, or programmes developed by the National Government, county governments, non-governmental organisations, that are unique and distinctive, with high and visible impacts, including being key to positioning the country regionally or internationally economically, socially, or otherwise; Section 22(3)(d)(ii) affordable housing; Section 22(3)(d)(iii) community centres for youth programmes or underprivileged communities; Section 22(3)(d)(iv) sustainable agriculture or energy initiatives; Section 22(3)(d)(v) healthcare programmes; and Section 22(3)(d)(vi) scientific research or innovations addressing challenges including climate change, infectious diseases, cybersecurity, or infrastructure projects improving access to water, sanitation, clean energy in remote of underdeveloped areas. Section 22(3)(e) response to emergencies or crises affecting communities or populations including natural disasters, conflicts, public health crises, or other unforeseen events that require urgent intervention; and Section 22(3)(e)(i) response to emergencies or crises affecting communities or populations including natural disasters, conflicts, public health crises, or other unforeseen events that require urgent intervention; and Section 22(3)(e)(ii) response as well as disaster risk reduction initiatives that help communities prepare for and respond to emergencies and disasters. Section 22(4) The Board may, in consultation with the Cabinet Secretary , operate any other game of chance or enter into collaboration, partnership or joint venture with any person, society, association or corporate entity, to operate a game of chance in accordance with existing laws, but losses from the game of chance, the collaboration, partnership or joint venture shall not be compensated for by the State or from the National Lottery Fund . Section 22(5) Any proceeds from any other game of chance operated by the Board under subsection (4) shall be paid into the Fund .

Section 22Verify source

§ 23THE NATIONAL LOTTERY - 23. ExemptionProvision

The National Lottery is exempt from written-law provisions regulating public lotteries for charitable, sporting and entertainment purposes.

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 23Verify source

§ 24THE NATIONAL LOTTERY - 24. Procurement of anoperatorCommencement

The Board may procure an operator to run the National Lottery and may require payment for documents; the Board must satisfy itself about applicants' fitness and must commence procurement two years before licence expiry; operators seeking extensions must commence at least two years before their agreement expires.

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, incompetence, or malpractice by persons engaged in gambling; Section 24(3)(a)(ii) was a director of a licensed person who has been liquidated or is under liquidation or statutory management; Section 24(3)(a)(iii) has taken part in any business practice which is proven to be fraudulent or prejudicial to the gambling market or public interest, or was otherwise improper, which would otherwise discredit the person's methods of conducting business; Section 24(3)(a)(iv) has taken part or has been associated with any business practice which casts doubt on the competence or soundness of judgment of that person; or Section 24(3)(a)(v) has acted in a manner that casts doubt on the person’s competence and soundness of judgment; Section 24(3)(b) any person who is to be employed by, associated with, or who shall be acting for or on behalf of, the applicant for the purposes of a gambling activity, including an agent; or Section 24(3)(b)(i) any person who is to be employed by, associated with, or who shall be acting for or on behalf of, the applicant for the purposes of a gambling activity, including an agent; or Section 24(3)(b)(ii) where the applicant is a company in a group of companies Section 24(3)(c) take into account whether the applicant has established effective internal control procedures and risk management systems to ensure its compliance with all applicable regulatory requirements; and Section 24(3)(d) have regard to the state of affairs of any other business which the person carries on or purports to carry on. Section 24(4) The Board shall satisfy itself that the applicant has sufficient appropriate knowledge or experience to carry out the operation of a national lottery and will be able to conduct the National Lottery in accordance with this Act. Section 24(5) The process of procurement of a new operator shall commence two years before the expiration of the current licence. Section 24(6) Subject to subsection (5), an operator who would like to seek for an extension of the duration for running the National Lottery , shall commence the process at least two years before the expiration of the subsisting agreement with the Board . Section 24(7) In case of procuring a new operator , it shall be the responsibility of the Board to commence the process two years before the expiration of the current licence.

Section 24Verify source

§ 25THE NATIONAL LOTTERY - 25. Licensing theNational LotteryCommencement

The regulatory authority must, upon prescribed application and payment of the prescribed fee, issue one licence authorizing the Board or the person procured under section 24 to operate a National Lottery.

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 Section 25(3)(b) ensure that the interests of every participant in the national lottery are adequately protected. Section 25(4) The provisions of any written law relating to the requirements, standards, norms and conditions relating to licensing of gambling activity shall apply to National Lottery .

Section 25Verify source

§ 26THE NATIONAL LOTTERY - 26. Duration of licenceProvision

The regulatory authority may extend a seven‑year licence by up to three more years (so total does not exceed ten) if done at least two years before expiry; the operator has no rights or legitimate expectations of extension beyond what this section provides; listed grounds at subsection (2) relate to extension considerations.

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 26Verify source

§ 27THE NATIONAL LOTTERY - 27. Obligations of theoperatorProvision

Theoperator must ensure compliance with requirements that the regulatory authority may determine or impose from time to time.

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 27Verify source

§ 28THE NATIONAL LOTTERY - 28. Overriding responsibilitiesProvision

Requires that the National Lottery be run and promoted with propriety and according to law; protects participants' interests; requires maximising net proceeds; and requires adopting strategic inclusive frameworks for responsible gambling and conduct of the national lottery.

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 28Verify source

§ 29THE NATIONAL LOTTERY - 29. Variation of conditions of theNational LotterylicenceProvision

The regulatory authority may vary the conditions of a National Lottery licence, including imposing or reducing conditions; when intending to vary it must serve notice specifying grounds and give the operator 14 days to give reasons after service and ensure notice is served at least 21 days before the intended variation; failure by the operator to give reasons within the period causes the licence to be deemed varied.

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 intended variation and shall specify the grounds for such variation. Section 29(5) Where the operator fails to give reasons within the period stated, the licence shall be deemed to be varied. Section 29(6)(a) decide whether or not to vary the licence; or Section 29(6)(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 vary the licence. Section 29(7) The variation of a licence shall not prejudice any liability or obligation incurred under or in relation to the licence prior to its variation.

Section 29Verify source

§ 30THE NATIONAL LOTTERY - 30. Enforcement of conditions of aNational LotterylicenceProvision

Section 30(1) lists factual grounds related to contraventions of National Lottery licence conditions; Section 30(2) states that the operator's liability to pay money under the Act remains despite a licence ceasing to be valid.

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 30Verify source

§ 31THE NATIONAL LOTTERY - 31. Revocation of aNational LotterylicenceProvision

A National Lottery licence may be revoked where the operator or the operator's representative has grossly violated the provisions of the Act.

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 31Verify source

§ 32THE NATIONAL LOTTERY - 32. Notice of revocation of aNational LotterylicenceProvision

The regulatory authority must notify the Board and operator in writing of grounds for licence revocation, require the operator to give reasons within fourteen days, may hold oral hearings or decide to revoke, must inform parties of the licence end date if it ceases to be valid, and must notify the public when it revokes a licence.

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 upon which the licence shall cease to be valid. Section 32(5) The revocation of a licence shall not prejudice any liability or obligation incurred under or in relation to the licence prior to its revocation. Section 32(6) Where the regulatory authority revokes a licence, it shall forthwith inform the public through a notice in the Gazette and two newspapers of national circulation or other medium of information with national coverage.

Section 32Verify source

§ 33THE NATIONAL LOTTERY - 33. Suspension of aNational LotterylicenceProvision

The regulatory authority may order suspension of a National Lottery licence after giving notice and an opportunity to be heard; if it suspends a licence it must inform the public and must inform the operator and the Board in writing of the suspension 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 33Verify source

Part IV

CONDUCT OF A NATIONAL LOTTERY

§ 34CONDUCT OF A NATIONAL LOTTERY - 34.National LotterygamesProvision

The operator may conduct National Lottery games with Board and regulatory authority approval; the regulatory authority, in consultation with the Board, must prescribe guidelines, policies and procedures for conducting National Lottery games, including specified items such as types of games, ticket validation, prize payment, frequency, sales methods, draws, ticket requirements and other necessary guidelines.

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 34Verify source

§ 35CONDUCT OF A NATIONAL LOTTERY - 35. Disclosure of oddsOffence

Operators must print tickets with approved imprint and logo; the regulatory authority issues purchase guidelines; operators may authorize agents (with approval) and determine ticket form and prize in consultation with the Board; unauthorised sellers commit an offence with fines or imprisonment.

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 a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding one year, or to both.

Section 35Verify source

§ 36CONDUCT OF A NATIONAL LOTTERY - 36. Persons prohibited from participating inNational LotteryProvision

Lists persons who are prohibited from participating in the National Lottery and requires the operator to verify identity and age to prevent child participation.

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 not participate in the National Lottery , the operator shall obtain and verify information establishing the identity and age of the customer before the purchase of a lottery ticket .

Section 36Verify source

§ 37CONDUCT OF A NATIONAL LOTTERY - 37. Offences relating toNational LotteryticketsOffence

It is an offence for any person to allow someone prohibited to participate in an unauthorized lottery; on conviction the offender may be fined up to five million shillings or imprisoned up to five years or both. If a winning ticket falls under subsection (2) the owner is not entitled to the prize, and prizes so awarded must be returned to the operator within one month; if not returned the operator may recover the prize or its value by civil suit.

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 37Verify source

§ 38CONDUCT OF A NATIONAL LOTTERY - 38. Disclosure by agentsProvision

If a partnership, disclosure covers all the general and limited partners.

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

Section 38Verify source

§ 39CONDUCT OF A NATIONAL LOTTERY - 39. DrawsProvision

Requires the operator and the regulatory authority to run and oversee public lottery draws: the operator conducts draws with regulatory approval; the regulatory authority determines and publishes winning numbers; an officer supervises selection; equipment must be tested by the authority with the operator's auditor; the operator must adopt rules and a ticket‑validation system.

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 39Verify source

§ 40CONDUCT OF A NATIONAL LOTTERY - 40. Payment ofprizeProvision

Section 40(2) says the operator is discharged from liability to winners upon payment of prizes according to the lottery's terms; Section 40(3) allows the operator to arrange payment by agents under conditions the operator may specify.

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 40Verify source

§ 41CONDUCT OF A NATIONAL LOTTERY - 41. Prizes and ticketsProvision

Section 41 sets rules about prizes and tickets: the operator must pay prizes within seven days of a draw, keep a register of surrendered prizes, is not responsible for lost or stolen tickets; lost-ticket reporters must report before a draw and may claim a prize if the reported lost ticket wins subject to operator conditions.

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 loss to the operator before a draw is conducted. Section 41(9) Where a ticket which is reported lost under subsection (8) is picked as a winning ticket at a draw, the person reporting the loss shall be entitled to claim the prize payable upon meeting such conditions as the operator may specify.

Section 41Verify source

§ 42CONDUCT OF A NATIONAL LOTTERY - 42. Audit of theNational LotteryOffence

The regulatory authority may appoint a qualified person to audit the National Lottery; that appointee may enter operator premises, access and inspect lottery tickets and records and take copies; directors and employees must provide information; failure to comply or obstructing the appointee is an offence with specified fines or imprisonment.

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 42(4) A person appointed under subsection (1), may enter the premises of the operator at all reasonable times and shall have access to and may inspect any tickets or any records kept by the operator whether in documentary or in electronic form relating to a National Lottery and may take copies or extracts from records. Section 42(5) Directors and employees of the operator who are involved in the conduct of a lottery, shall give to a person appointed under this section such information in their possession relating to the lottery as may be required by that person. Section 42(6) A director, employee or agent of the operator who fails or refuses to comply with a request made under this section, in relation to any information in his or her possession, or who obstructs or hinders a person appointed to perform his or her functions under this section, commits an offence and shall be liable on conviction to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding one year or to both.

Section 42Verify source

§ 43CONDUCT OF A NATIONAL LOTTERY - 43. Apportionment of the proceeds of theNational LotteryProvision

Sets how National Lottery proceeds are apportioned, caps administrative costs for the regulator and Board at three per cent of gross revenue, requires Cabinet Secretary for finance approval for those costs, and requires the operator to pay monies to the Fund weekly or as the Board determines earlier.

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 43Verify source

Part V

THE NATIONAL LOTTERY FUND

§ 44THE NATIONAL LOTTERY FUND - 44. Establishment of theNational LotteryFundCommencement

Section 44 establishes the National Lottery Fund, requires the Fund to retain and disburse National Lottery proceeds, lists sources of the Fund's monies, directs the Board to apportion proceeds to specified good causes (with consultation and Cabinet Secretary approval) at least six months before the next financial year, and permits the Cabinet Secretary to make regulations prescribing additional criteria.

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 regulations prescribing any additional criteria for consideration by the Board when proposing the apportionments under subsection (4).

Section 44Verify source

§ 45THE NATIONAL LOTTERY FUND - 45. Administration of theFundProvision

The Board is responsible for administering the National Lottery Fund and must carry out specified duties including approving accounts, determining allocations, approving investments and disbursements, managing assets, receiving donations, advising the Cabinet Secretary, limiting administrative expenses to three per centum, and ensuring equitable distribution.

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 bodies, or non- state actors who may receive monies from the Fund for further distribution to potential beneficiaries including any conditions attached to such grants to promote the object and purpose for which the Fund was established; Section 45(2)(g) approve the disbursements out of the Fund to further the objects and purpose of the Fund ; Section 45(2)(h) manage, control and administer the assets of the Fund in such manner and for such purposes as to best promote the purpose for which the Fund is established; Section 45(2)(i) receive any gifts, grants donations or endowments made to the Fund or any other monies lent to the Fund ; Section 45(2)(j) ensure that in any financial year, the distribution of the proceeds and the expenditure from the Fund shall not exceed the annual income of the Fund and any surplus income brought forward from the previous year; Section 45(2)(k) advise the Cabinet Secretary on matters relating to the distribution and application of its apportionment of the revenue of the National Lottery and any other matter which the Cabinet Secretary may require advice or general direction; Section 45(2)(l) ensure that the amount of money that may be spent from the Fund on administrative expenses does not exceed three per centum of the total funds in a fiscal year; Section 45(2)(m) advise the Cabinet Secretary on matters relating to the distribution and application of its apportionment of the revenue of the National Lottery and any other matter which the Cabinet Secretary may require advice or general direction; Section 45(2)(n) develop guidelines on savings for persons who purchase the National Lottery tickets; and Section 45(2)(o) perform such other functions as may be lawfully performed by the Board . Section 45(3) The Board shall, while proposing and determining the allocation, setting the criteria and conditions for accessing the Fund , ensure equitable distribution across the country including allocations to state and non-state actors.

Section 45Verify source

§ 46THE NATIONAL LOTTERY FUND - 46. Annual programmes and projectsProvision

The Board must, through regular publications, inform the public about its activities and operations and ensure those activities and operations are accessible to the public.

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 application of monies received from the Fund . Section 46(2) The Board shall, through regular publications, inform the public of its activities and operations and ensure that such activities and operations shall be accessible to the public.

Section 46Verify source

§ 47THE NATIONAL LOTTERY FUND - 47. Administrator of theFundProvision

Section 47 assigns the Chief Executive Officer of the Board as Administrator of the National Lottery Fund and lists the Administrator's responsibilities, including running day-to-day affairs, opening Board- and National Treasury-approved bank accounts, keeping accounts and records, custodianship of assets, maintaining beneficiary registers, preparing and submitting statements and reports, outsourcing and contracting with Board approval, and maintaining purchaser saving accounts.

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 the Fund and maintain a record of the amount disbursed and the balance thereof; Section 47(3)(i) prepare, sign and transmit to the Auditor-General, in respect of each financial year and within three months after the end thereof, a statement of accounts relating to the Fund and showing the expenditure incurred from the Fund , and such details as the Public Sector Accounting Standards Board may prescribe from time to time, in accordance with the provisions of the Act and Public Audit Act ( Cap. 412B ); Section 47(3)(j) 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 with copies to the Controller of Budget and the Commission on Revenue Allocation; and Section 47(3)(k) implement any recommendations from the Board for policy guidance in furtherance of the objects and purpose of the Fund . Section 47(4) The Administrator shall maintain an account for every person who purchases a National Lottery ticket for the purposes of the saving component.

Section 47Verify source

§ 48THE NATIONAL LOTTERY FUND - 48. Beneficiaries of theFundProvision

Certain entities are eligible to access the Fund; persons or institutions that are not tax compliant are ineligible; institutions whose officials lack prior clearance are ineligible.

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 48Verify source

§ 49THE NATIONAL LOTTERY FUND - 49. Financial year of theFundProvision

The financial year of the Fund is the twelve-month period ending on 30 June each year.

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 49Verify source

§ 50THE NATIONAL LOTTERY FUND - 50. Investment of funds of theFundProvision

The Administrator may, with the Board's approval, invest any of the Fund's monies that are not immediately required and subject to the Public Finance Management Act (Cap. 412A).

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 ).

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§ 51THE NATIONAL LOTTERY FUND - 51. Retention of receiptsProvision

The Fund must retain all receipts, earnings and accruals to the Fund, and the balance of the Fund at the close of each financial year, for the purpose for which the Fund is established.

Section 51. Retention of receipts Section All receipts, earnings and accruals to the Fund , and the balance of the Fund at the close of each financial year, shall be retained by the Fund for use for the purpose for which the Fund is established.

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§ 52THE NATIONAL LOTTERY FUND - 52. Offence of misappropriation and penaltyOffence

Misappropriating the Fund's monies or assets (or assisting others to do so) is an offence punishable on conviction by a fine up to ten million shillings, imprisonment up to ten years, or both.

Section 52. Offence of misappropriation and penalty Section A person who misappropriates any of the funds or, assets of the Fund , or assists or causes any person to misappropriate or apply funds, otherwise than in the manner provided in this Act, commits an offence and shall upon conviction, be liable to a fine not exceeding ten million shillings or imprisonment for a term not exceeding ten years, or to both.

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Legislative relationships

8 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

7 instruments

Act and Public Audit Act
Section 47
Board and make disbursements therefrom in accordance with the provisions of this Act
Section 8
Board shall be prepared and audited in accordance with the Public Finance Management Act
Section 20
Board under this Act
Section 15
Constitution and the Public Procurement and Asset Disposal Act
Section 24
Fund in accordance to the provisions of the Public Finance Management Act
Section 45
Fund's monies that are not immediately required and subject to the Public Finance Management Act
Section 50

N–S

1 instrument

National Lottery in such manner as may be prescribed by this Act
Section 44

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12 Jan 2024 · currentEnglish

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