The High Court of Kenya has put a halt to the country's new gambling licensing framework. On Monday, Justice William Musyoka issued a stay order on the Gambling Control (Licensing) Regulations 2026 following a lawsuit filed by Thomas Buckley Opar Owuor and Ken Brance. Owuor, who leads the law firm Buckley Owuor & Co Advocates in Nairobi County, has extensive experience in the gambling sector, having served nearly three years as the business development director for Sportpesa.
David Sarinke, a partner at McKay Advocates, informed iGB that this ruling effectively pauses operations in Kenya's licensed gambling market, as the new regulations only pertain to licensed operators. He noted that the case contains a constitutional challenge related to significantly raised capital requirements imposed on licensees.
According to Sarinke, the final financial thresholds set forth in the regulations were substantially higher than those initially outlined during public consultation processes. He emphasized that public participation is a fundamental aspect of governance under Article 10 of Kenya’s 2010 Constitution.
"When a case is filed to contest the enactment of a law, the court typically issues orders to halt its implementation, particularly if the challenge is anchored in constitutional issues," Sarinke explained.
He pointed out that the foundational challenge is based on a critical constitutional principle of public participation, which he believes enhances the likelihood that the plaintiffs’ case will be successful, as they argue that changes were made post-publication that had not undergone public input.
The new regulations, part of the Gambling Control Act, were previously viewed as a fresh start for the gambling environment in Kenya after prolonged instability. This act replaced the older legislation from 1966, transferring regulatory authority from the Betting Control and Licensing Board to the newly established Gambling Regulatory Authority (GRA).
Despite optimism surrounding these reforms, Sarinke expressed concerns about the timing of the regulatory processes moving forward. "This is a significant setback as the new law was already meant to be operational," he stated. "Now we find ourselves without a functioning licensing framework, and it may take several months to move forward."
In light of the stay order, Owuor and Brance have 14 days to file a comprehensive judicial review motion aimed at abolishing the current licensing regulations. Their application highlighted that many operators were worried about meeting the heightened financial demands posed by the new rules, with some even considering closure.
They warned that such developments could jeopardize thousands of jobs, halt investments, and ultimately diminish government tax revenues. Upon receipt of the substantive motion, the GRA, government, and the Association of Gaming Operators Kenya (AGOK) will have 14 days to submit their responses. The case is scheduled for a procedural hearing at the High Court on September 21, while the GRA has yet to comment on the recent ruling. The interim stay will remain effective until the court issues further orders, preventing the implementation of the regulations.
