The High Court of Kenya has placed a suspension on the country's new gambling licensing framework. On Monday, Justice William Musyoka issued a stay order against the Gambling Control (Licensing) Regulations 2026, following a legal challenge from Thomas Buckley Opar Owuor and Ken Brance.
David Sarinke, a partner at McKay Advocates, explained that this stay order effectively halts the progress of Kenya's licensed gambling market, as the new regulations were meant solely for licensed operators. Sarinke highlighted that the case invokes constitutional arguments related to increased capital requirements imposed on those seeking licenses.
The final capital requirements outlined in the new legislation were reportedly higher than those presented in earlier public consultations. Under Article 10 of Kenya’s 2010 Constitution, public participation is recognized as a national value and principle of governance.
Sarinke noted, "When a case is filed to challenge a law before it takes effect, courts typically issue orders to halt implementation, particularly when the challenge is rooted in constitutional principles." He emphasized that the situation centers around the critical constitutional issue of public participation, which could significantly impact the case's chances of success. The plaintiffs argue that the final provisions of the regulations included elements that were not subjected to public consultation.
This development is seen as a substantial setback for Kenya's licensed gambling sector. The new regulations were intended to usher in a positive era following years of regulatory uncertainty. The associated Gambling Control Act replaced legislation dating back to 1966, and oversight was shifted from the Betting Control and Licensing Board to the newly established Gambling Regulatory Authority (GRA).
Sarinke expressed concerns regarding the implications of this obstacle on the timeline for the sector's advancement. He remarked, "This is a major blow, as the new law has been set in motion. We now lack a licensing framework, and it may be several months before we can move forward."
In the wake of the stay order, Owuor and Brance have 14 days to file a substantive judicial review motion. Their initial application sought to completely repeal the current licensing regime. They asserted that many operators raised concerns over their ability to meet the heightened financial obligations created by the new regulations, with some even contemplating shutting down their businesses.
The case highlighted potential risks to thousands of jobs, a withdrawal of investments, and a decrease in government tax revenue.
Thomas Buckley Opar Owuor leads the Buckley Owuor & Co. Advocates law firm in Nairobi County and previously served as the business development director at Sportpesa for nearly three years. Once the substantive motion is received, stakeholders, including the regulator, the government, and the Association of Gaming Operators Kenya (AGOK), will have 14 days to respond.
As of now, the GRA has not issued any public comments regarding the court ruling. The case is scheduled to return to the High Court on September 21 for directions on its future proceedings. Until the court decides otherwise, the interim stay will remain effective, preventing any implementation of the updated licensing regulations.
