Kenya’s High Court has allowed most gambling regulations to take effect once again, reversing a full suspension issued last month. However, the contentious increased licensing fees and capital requirements remain on hold. This decision follows a legal challenge initiated in July by Thomas Buckley Opar Owuor and Ken Brance, which led to a halt on the Gambling Control (Licensing) Regulations 2026. The stay had impacted the country’s licensed gambling sector by freezing new applications and oversight activities.
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Regulatory Functions Resume Amidst Uncertainty
The court’s recent decision permits the Gambling Regulatory Authority (GRA) to resume key functions like license processing and compliance checks. GRA officials had argued that the earlier stay created a “regulatory vacuum,” allowing unlicensed operators to function unchecked. Despite this easing, the judicial review regarding the suspended fee provisions is ongoing. Written submissions are expected by September 21, with a final judgment scheduled for October 2. Industry insiders are watching closely. David Sarinke from McKay Advocates noted that while regulatory processes are back on the table, the fees’ ambiguity remains. “There’s a need for guidance on applicable fees during this interim,” Sarinke stated. Meanwhile, Steve Kipruto David of KDS Advocates suggests the previous fee structure may not simply return, citing the government’s aim for tighter controls.
Changes to Licensing Fees Stir Debate
Kenya’s regulatory overhaul has been in the works since last year as part of a shift from laws dating back to 1966. Particularly controversial are the new fees. Previously, iGaming operators paid modest amounts—roughly between Ksh10,000 and Ksh1 million—depending on their licensing category. New regulations, however, spike application fees to Ksh5 million and license fees to Ksh50 million, although licenses now last three years instead of being annually renewed. According to the suspension request, these fee hikes range from 200% to nearly 50,000%. A capital requirement of Ksh100 million for online operators further adds to the burden. Numerous operators have voiced concerns about meeting these heightened requirements, warning of potential closures and the economic fallout that would follow.
Legal Scrutiny and Public Participation
The ongoing lawsuit challenges the constitutionality of the capital requirements, arguing they were set higher than figures discussed during public consultations. Kenya’s Constitution mandates public involvement in governance decisions, a point Sarinke argues the government has met through extensive stakeholder engagement. Kipruto, however, doubts this angle will influence the case’s outcome. “Unconscionability of the fees is the stronger argument,” he remarked. Kipruto suggests a longer compliance window should be considered. “Some operators need time,” he explained, proposing a potential two-year extension for meeting new requirements, a viewpoint he has already discussed with GRA and government legal teams. The court is poised to potentially extend the current compliance deadlines, and by October 2, more clarity could emerge from the ongoing judicial review.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
