The High Court of Kenya has partially lifted a stay order that previously halted all gambling regulations last month. Most of the regulations are enforceable again, but increased licensing fees and capital requirements continue to be suspended.
In July, Justice William Musyoka granted a stay order concerning the Gambling Control (Licensing) Regulations 2026, a legal challenge initiated by Thomas Buckley Opar Owuor and Ken Brance. This ruling effectively paused operations in Kenya’s licensed gambling sector, allowing only existing regulations for authorized entities to remain applicable.
On Friday, Musyoka eased the stay order after requests from the Kenyan government and the new Gambling Regulatory Authority (GRA) to maintain a suspension on only the most controversial provisions. The GRA argued that the full stay order had created a “regulatory vacuum,” allowing unlicensed operators to function without GRA oversight.
With this ruling, the GRA can resume its regulatory activities, including processing license applications, performing due diligence on operators, and enforcing anti-money laundering measures alongside consumer protection protocols.
Although the stay order has been partially lifted, the substantive judicial review regarding whether the suspended provisions will stay in effect will continue. Written submissions must be submitted by September 21, with a full ruling expected on October 2.
The suspended aspects focus mainly on increased licensing fees and the capital requirements for licensees. David Sarinke, a partner at the Kenyan law firm McKay Advocates, stated that while there is scrutiny regarding the heightened fees, the ruling allows the licensing process to recommence.
According to Sarinke, the court did not specify which fees should be applicable during this suspension period, but he anticipates the regulator will provide updated guidance that returns to the previous fees established before the new legislation.
“Obviously, the reasonable thing to do is go back to the previous fees it was applying as a way for the court to make a determination on that point,” Sarinke noted. “We expect the regulator basically to give some kind of guidance as to their understanding, but obviously I will expect that they will reopen applications for licences, and then they will have to guide us to which fees will now be applicable.”
Conversely, Steve Kipruto David, founder of KDS Advocates, believes the situation may be more complex. He suspects the government will not simply revert to the previous fee structure due to a desire for stricter compliance and to favor larger operators in the market. “I doubt it,” he asserted. “I view these fees as, yes, they’re exorbitant, but it’s now a big game, and the big game is for the big guys. So for me, I think it will not be reviewed downward.”
Kipruto also mentioned that there are currently over 150 licensed firms, and many may struggle to meet the new capital requirements.
Last year, Kenya initiated a new regulatory framework, aiming to overhaul laws established in 1966. The existing regulator, the Betting Control and Licensing Board (BCLB), was replaced with the GRA, along with a suite of new regulations, including significant increases in licensing fees.
Under the previous rules, iGaming operators typically paid around Ksh10,000 ($77) for a license application, alongside annual license fees of approximately Ksh400,000 to Ksh1 million. However, the new fees have drastically risen, with online bookmaker application fees escalating to Ksh5 million, and the license costing Ksh50 million, now covering a three-year period instead of annual renewals.
Initial requests for a stay order indicated that licensing costs have seen increases ranging from 200% to a staggering 49,900%. The new gambling capital requirement has been set at Ksh100 million for online bookmakers and iGaming operators, adding another layer of challenges for many in the industry.
The original lawsuit highlighted concerns from numerous operators about the viability of meeting these higher fees, with some contemplating closure, which could jeopardize thousands of jobs, reduce tax revenue for the government, and inhibit investment in the sector.
The ongoing legal proceedings allege that the raised capital requirements could be unconstitutional due to exceeding the amounts proposed during public consultations. Article 10 of Kenya’s 2010 Constitution emphasizes public participation as a fundamental national value. However, Sarinke remarked that the government presented substantial documentation to demonstrate that stakeholder engagement had occurred throughout the development of the regulations.
Kipruto also expressed skepticism about the success of the public participation argument, suggesting that the more compelling issue would be the excessive nature of the fees. He believes that operators currently lack the resources to meet the stringent capital requirements and that more time should be granted for compliance.
“They must be given an extended period,” he argued, advocating for a possible two-year extension to comply instead of a deadline at the year’s end.
Kyle Goldsmith has transitioned from sports journalism to become a senior reporter focused on Latin America with iGB since December 2023.
