The High Court of Kenya has placed a suspension on the new gambling licensing framework, effectively halting its implementation. On Monday, Justice William Musyoka issued a stay order against the Gambling Control (Licensing) Regulations 2026 following a lawsuit from Thomas Buckley Opar Owuor, who runs a Nairobi-based law firm, and Ken Brance. Owuor previously served as the business development director for Sportpesa for nearly three years.
David Sarinke, a partner at the law firm McKay Advocates, explained that this court order effectively pauses Kenya's licensed gambling market since the new regulations pertain solely to licensed entities.
The case raises constitutional arguments related to substantially increased capital requirements imposed on licensees. Sarinke noted that the final figures in the legislation exceeded those discussed during public consultations. Public participation is a key tenet under Article 10 of Kenya’s 2010 Constitution, emphasizing it as a national value.
"Once a case is filed against a law about to take effect, the court typically issues orders to halt any implementation, particularly if there are constitutional grounds for the objection," Sarinke stated.
He emphasized that the objection is rooted in a crucial constitutional principle regarding public participation, which could significantly influence the case's success. The plaintiffs argue that new stipulations were added post-publication without seeking public input.
The regulations, introduced alongside the significant Gambling Control Act, were widely regarded as a progressive shift for Kenya's gambling sector following years of instability. This new act replaces legislation from 1966 and transfers jurisdiction from the Betting Control and Licensing Board to the newly formed Gambling Regulatory Authority (GRA).
Despite the optimism surrounding the regulations, Sarinke expressed concern over the potential delay in advancing Kenya's licensed gambling landscape. "This is quite a setback, as the new law has already taken effect. We are now without a licensing framework, and it may take several months to resolve this issue and progress."
As for the next steps, Owuor and Brance have 14 days to file a substantive judicial review motion. In their initial request, they called for the complete annulment of the current licensing regime. They claimed that many operators are struggling to meet the higher fees specified in the new regulations, with some even considering shutting down. This uncertainty poses risks to thousands of jobs, prompts divestiture of investments, and threatens government tax revenues.
Following the submission of the substantive motion, various stakeholders, including the regulator, the government, and the Association of Gaming Operators Kenya (AGOK), will also have 14 days to respond. The High Court has scheduled a hearing for September 21 to outline how the case will proceed. The GRA has not provided a public comment regarding the court’s decision. Until further notice from the court, the interim stay will remain effective, preventing the enforcement of the new licensing regulations.
