The High Court of Kenya has partially lifted a stay order that previously paused the implementation of new gambling regulations put in place last month. Most of the regulations are now enforceable, with the exception of the heightened licensing fees and capital requirements, which remain on hold.
In July, Justice William Musyoka issued a stay order against the Gambling Control (Licensing) Regulations 2026, following a legal challenge filed by Thomas Buckley Opar Owuor and Ken Brance. This ruling effectively froze activities in Kenya's licensed gambling sector, allowing the new regulations to apply only to authorized entities.
However, on Friday, Musyoka decided to partially lift the stay order after the Kenyan government and the new Gambling Regulatory Authority (GRA) indicated that only the most contentious aspects should remain suspended. The GRA argued that the complete stay had created a "regulatory vacuum," enabling unlicensed operators to function without oversight.
This latest ruling allows the GRA to resume its regulatory duties, including receiving and processing license applications, conducting due diligence on operators, and overseeing anti-money laundering and consumer protection measures.
Despite this progress, the full judicial review regarding the suspended provisions will continue. Written submissions are due by September 21, with a complete judgment expected by October 2.
Currently, the suspension specifically affects increased licensing fees and capital requirements for operators. David Sarinke, a partner at Kenyan law firm McKay Advocates, mentioned that while there has been scrutiny over these fee hikes, the ruling enables the licensing process to restart.
The court did not clarify which fees would apply as the increase remains halted. Sarinke anticipates that the GRA will ultimately revert to the prior licensing fees that were in place before the regulations were revised. He stated, "The reasonable thing to do is go back to the previous fees, which will allow the court to make a determination on that point."
Kenya began shifting towards a revised framework for gambling last year, aiming to update laws that dated back to 1966. The old regulator, the Betting Control and Licensing Board (BCLB), was replaced by the GRA, and a series of new regulations were introduced.
The most disputed new feature has been the considerable increases in licensing fees. Previously, iGaming operators typically paid just over Ksh10,000 ($77) for a license application and between Ksh400,000 and Ksh1 million annually in licensing fees. Now, the application fee for an online bookmaker license has skyrocketed to Ksh5 million, with the annual fee set at Ksh50 million. Moreover, licenses now span a three-year duration instead of annual renewals.
According to the initial request for the stay order, licensing fees have surged between 200% and 49,900%. Additionally, a new capital requirement of Ksh100 million has been introduced for online bookmakers and iGaming firms, representing a significant hike.
The initial legal suit highlighted that numerous operators were worried about their capacity to meet these heightened financial demands, with some contemplating closure due to the potential job losses and the threat to investments and tax revenues for the government.
Amid these concerns, the ongoing legal challenge claims that the increased capital requirements might be unconstitutional, as they surpass figures suggested during public consultation. Article 10 of Kenya's 2010 Constitution mandates public participation as a core governance principle. However, Sarinke noted that the government provided substantial documentation proving that public and stakeholder engagement had occurred during the regulation's formulation.
