The High Court in Kenya has partially lifted its stay order that had previously put a hold on gambling regulations last month. Most of the regulations are now enforceable again, except for the increased licensing fees and capital requirements, which remain suspended.
In July, Justice William Musyoka issued a stay order against the Gambling Control (Licensing) Regulations of 2026 following a legal challenge by Thomas Buckley Opar Owuor and Ken Brance. This order halted operations in Kenya's licensed gambling sector, restricting the new regulations to authorized entities only.
On Friday, the court decided to lift the order partially. The Kenyan government and the new Gambling Regulatory Authority (GRA) requested that only the most contentious provisions be suspended. The GRA argued that the complete stay order had resulted in a “regulatory vacuum,” allowing unlicensed operators to function without any supervision.
As a result of the ruling, the GRA is now able to resume its regulatory duties, including the acceptance and processing of license applications, conducting due diligence checks on operators, and overseeing anti-money laundering and consumer-protection measures.
Despite this partial lift, the main judicial review regarding the suspended provisions is still set to proceed. Written submissions are expected by September 21, with a full judgment scheduled for October 2.
The issues that remain on hold include the heightened licensing fees and the capital requirements for licensees. David Sarinke, a partner at McKay Advocates in Kenya, stated that while increased fees have come under scrutiny, the court's ruling allows the licensing process to move forward. He noted that the court did not clarify which licensing fees would apply while the increased fees are in abeyance. Sarinke anticipates that the regulator will provide updated guidance reverting to the previous fee structure that was in place before the overhaul.
Kenya is currently transitioning to a new regulatory framework for gambling, aiming to update laws that have been in place since 1966. The previous regulator, the Betting Control and Licensing Board (BCLB), has been replaced by the GRA, alongside a suite of new regulations.
Among these changes, the new licensing fees have sparked significant controversy. Previously, iGaming operators paid just over Ksh10,000 ($77) for a license application, along with annual fees ranging between Ksh400,000 and Ksh1 million. This has dramatically shifted, with application fees for an online bookmaker's license now skyrocketing to Ksh5 million, and yearly license fees reaching Ksh50 million. Notably, these licenses are now valid for a three-year term, rather than requiring annual renewal.
According to the original request for a stay order, fees have surged by between 200% and 49,900%. Additionally, online bookmakers and iGaming operators must now meet a new gambling capital requirement of Ksh100 million.
The original lawsuit stated that many operators expressed concerns about their capability to meet these heightened fees and some were contemplating shutdowns. This situation poses a risk of job losses, decreased investments, and reduced tax revenues for the government.
The ongoing legal proceedings also challenge the increased capital requirements, arguing that they may be unconstitutional as they exceed figures proposed during public consultations. Article 10 of Kenya’s 2010 Constitution emphasizes public participation as a national value and governance principle. However, Sarinke noted that the government had presented ample documentation showing that public and stakeholder engagement occurred during the creation of these regulations.
