The High Court of Kenya has partially lifted a stay order that had previously blocked the enforcement of gambling regulations. Most of the regulations are now back in effect, although the increased licensing fees and capital requirements remain on hold.
In July, Justice William Musyoka had issued a stay order against the Gambling Control (Licensing) Regulations 2026, initiated following a legal challenge by Thomas Buckley Opar Owuor and Ken Brance. This order halted operations in Kenya’s licensed gambling sector, applying the new regulations only to authorized entities.
On Friday, Musyoka partly lifted this order, responding to requests from the Kenyan government and the new Gambling Regulatory Authority (GRA) that only the most contentious aspects remain suspended. The GRA warned that the full stay order had led to a “regulatory vacuum,” allowing unlicensed operators to function without the necessary regulatory oversight.
As a result of this ruling, the GRA is now authorized to resume its regulatory duties, including processing license applications, performing due diligence on operators, and maintaining oversight related to anti-money laundering and consumer protection.
Despite this progress, the broader judicial review concerning the suspended provisions will continue. Written submissions are due by September 21, and a full judgment is expected on October 2.
Key provisions still suspended include the increased licensing fees and higher capital requirements for licensees. According to David Sarinke, a partner at McKay Advocates, the ruling allows the licensing process to continue, despite ongoing concerns about the raised fees. The court did not clarify which licensing fees should currently apply while the increased fees are suspended.
Sarinke anticipates that the GRA will issue guidance reverting to the previous fee structure prior to the overhaul in legislation. “The logical step would be to return to the former fees as the court assesses this matter,” he stated. "I expect the regulator to open applications for licenses and provide clarification on applicable fees."
Under the new regulatory framework, which aims to replace laws dating back to 1966, the previous regulator, the Betting Control and Licensing Board (BCLB), has been succeeded by the GRA.
A major point of contention has been the substantial increase in licensing fees. Previously, iGaming operators paid just over Ksh10,000 (approximately $77) for a license application, and annual fees ranged from about Ksh400,000 to Ksh1 million. Now, the fees for an online bookmaker license have surged to Ksh5 million, with the annual fee set at Ksh50 million. Notably, these licenses now cover a three-year period instead of requiring annual renewals.
The request for the stay order highlighted that licensing fees had increased by between 200% and 49,900%, alongside a new gambling capital requirement of Ksh100 million for online bookmakers and iGaming operators. The initial suit indicated that numerous operators were worried about their capacity to meet these elevated fees, with some even contemplating closure. This situation could jeopardize thousands of jobs, deter investments, and ultimately diminish government tax revenues.
The ongoing legal case also argues that the increased capital requirements might violate constitutional provisions, as they exceed figures proposed during a public consultation. Article 10 of Kenya’s 2010 Constitution emphasizes public participation as a fundamental principle of governance. However, Sarinke remarked that the government presented substantial evidence demonstrating that public and stakeholder engagement took place throughout the regulation’s development process.
