Kenya High Court Clears Path for Gambling Licenses

Justice William Musyoka’s latest ruling has reopened the door for Kenya’s gambling regulator to resume its work.

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The High Court partially lifted the stay order that had frozen the Gambling Control (Licensing) Regulations 2026, allowing most of the rules to take effect again. Only the higher licensing fees and new capital requirements remain suspended for now.

The earlier order, issued in July after a challenge from Thomas Buckley Opar Owuor and Ken Brance, had stalled the sector by blocking the regulator from enforcing the new framework. Regulators argued that the freeze created a “regulatory vacuum,” leaving unlicensed operators unchecked.

Friday’s decision means the Gambling Regulatory Authority can once more process licence applications, vet operators, and carry out oversight on issues like money laundering and consumer protection.

Almost 49,900% increase in fees still suspended

Musyoka’s order leaves the sharp rise in licensing costs and capital requirements on hold until the full judicial review is completed.

Under the new rules, application fees for an online bookmaker licence jumped from just over Ksh10,000 to Ksh5 million, while annual licence fees that once ranged between Ksh400,000 and Ksh1 million now stand at Ksh50 million. 

Licences also run for three years instead of being renewed annually. Alongside these changes, operators face a new capital requirement of Ksh100 million.

Applicants argued that the increases, ranging from 200 per cent to nearly 49,900 per cent, were excessive and risked driving companies out of business. Their suit warned that closures could cost jobs, reduce investment, and cut government tax revenues.

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For now, those provisions set out in the Second and Third Schedules remain suspended, while the rest of the Gambling Control Regulations continue to be enforced.

Final judgment set for October as regulator push for new rules

The High Court has directed both sides to move forward with the substantive judicial review, requiring written submissions to be filed and exchanged by 21 September 2026. Judgment will then be delivered on 2 October through the court’s Case Tracking System.

In arguments before the court, as seen by SiGMA, Peter M. Karimi, Director General of the Gambling Regulatory Authority, stressed that the Gambling Control Act No. 14 of 2025 had already come into force last August.

He explained that subsidiary rules were necessary to give the Act full effect, covering licensing categories, application procedures, financial thresholds, technical standards, and renewals.

Applicants disagreed, warning that lifting the stay order allowed disputed provisions to operate before their case was resolved. They pointed to sections 121 and 122 of the Act, which recognise licences issued under the old regime during the transition but, in their view, do not provide complete guidance for new applications or renewals under the 2025 framework.

Until the October ruling, Kenya’s new licensing system will continue to function in part, with the regulator able to process applications and oversee compliance, while the contested fee hikes and capital requirements remain frozen under the court’s stay.

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