Key Points
- Justice Musyoka’s partial ruling restores GRA oversight powers but keeps the 200%–49,900% fee increases suspended until the 2 October judgment.
- Online bookmaker application fees rose from Ksh10,000 to Ksh5 million under the 2026 regulations, with annual licence fees reaching Ksh50 million; more than 150 licensed firms now face a compliance deadline they may not be able to meet.
- A separate legal challenge to GRA Director General Peter Karimi’s appointment, on the grounds that he previously led a betting operator and allegedly lacks the required experience, risks undermining the authority’s regulatory decisions if it succeeds.
Kenya’s Licensing Freeze Cracks, But the Fee Battle Continues
The gambling industry in Kenya was rendered practically paralysed for three weeks following the freezing of the new regulations governing the issuance of licences by the High Court of Kenya towards the end of July. Justice William Musyoka partly revoked this on 8 August, and as a result, the majority of the Gambling Control (Licensing) Regulations 2026 have come back into effect. The Gambling Regulatory Authority (GRA) is able to issue licences, perform due diligence on operators, and oversee money laundering and consumer protection.
What is still frozen is the part of the regulation that started this legal battle, which includes the Second Schedule and Third Schedule fee increments.
The GRA argued the original blanket stay, issued on 20 July following a challenge by lawyers Thomas Buckley Opar Owuor and Ken Brance, had created a “regulatory vacuum.” With the framework fully frozen, unlicensed operators faced no oversight while licensed firms could not progress applications or renew licences. The court agreed that a complete freeze caused more harm than a targeted suspension of the disputed provisions.
A Fee Structure That Shocked the Industry
Under the previous regime, an online bookmaker paid just over Ksh10,000 ($77) in application fees, with annual licence costs running between Ksh400,000 and Ksh1 million. The 2026 regulations raised the application fee to Ksh5 million and the licence fee to Ksh50 million. Licences now run for three years rather than being renewed annually.
The capital requirement is where the dispute sharpened. Court filings by Opar and Brance noted the Third Schedule imposed a gambling capital figure of Ksh100 million for casinos, which is 500% above the Ksh20 million security Parliament had approved in the Act’s own schedule. Pool and betting licence renewal fees moved from Ksh5,000 to Ksh2.5 million. Across all licence categories, the increases range from 200% to 49,900%.
GRA Director General Peter Karimi defended the framework in court. He told the court the Gambling Control Act No. 14 of 2025 came into force on 26 August 2025, and that the subsidiary licensing rules were essential to make the Act operational across application procedures, financial thresholds, and technical standards.
Two Lawyers, Two Readings of What Comes Next
The partial ruling has divided legal opinion on what the GRA will do while the fee question stays open.
David Sarinke, partner at McKay Advocates in Nairobi, told iGamingBusiness the court gave no guidance on which fee schedule now applies. He expects the GRA to revert to pre-2026 rates pending October.
“Obviously, the reasonable thing to do is go back to the previous fees it was applying as a way for the court to make a determination on that point,” Sarinke said. “We expect the regulator basically to give some kind of guidance as to their understanding, but obviously I will expect that they will reopen applications for licences, and then they will have to guide us to which fees will now be applicable.”
Steve Kipruto David, founder of KDS Advocates, does not expect a simple rollback. He reads the overhaul as a deliberate attempt to concentrate the market around better-capitalised players.
“I doubt it,” Kipruto said. “I view these fees as, yes, they’re exorbitant, but it’s now a big game, and the big game is for the big guys. So for me, I think it will not be reviewed downward.”
With more than 150 licensed firms operating, Kipruto doubts even a quarter could meet the Ksh100 million capital requirement by year-end. He has been pressing the government and the Office of the Attorney General for a compliance extension of at least two years.
The Constitutional Argument and Its Limits
Owuor and Brance also argue on constitutional grounds, claiming the final capital requirements exceeded the figures put to the public during consultation, which breaches Article 10 of Kenya’s 2010 Constitution. A separate challenge, filed under a certificate of urgency by lawyer Biketi Wati, goes further, arguing the regulations were pushed through Parliament without adequate stakeholder input.
The government responded with documentation showing engagement had taken place, and Karimi maintained the fees followed proper consultations. Legal observers are not convinced the constitutional argument will determine the outcome. Kipruto is direct on the point.
“That angle, I think it will not succeed,” he said. “I think the strongest point is the unconscionability of the fees.”
Written submissions are due by 21 September 2026, ahead of the 2 October judgment.
The GRA’s Leadership Is Also Under Challenge
Running alongside the licensing dispute is a set of legal challenges that has attracted far less attention. Two petitions, filed before the High Court and the Employment and Labour Relations Court, contest the appointment of Peter Maina Karimi as the GRA’s inaugural director general. The High Court petition argues Karimi’s previous role as chief executive of betting operator mCHEZA disqualifies him under a provision barring former gambling company directors, employees, or shareholders from the post unless they left at least five years prior. The petitions also contend he lacked the minimum ten years of senior management experience the Gambling Control Act requires.
Karimi, who came into power in February 2026, is not in favour of either petition. Should any of the courts decide to rule against Karimi, the regulatory rulings made by him become vulnerable to legal challenges.
Expert Analysis
Kenya replaced gambling legislation from 1966 with the Gambling Control Act 2025. The transition from the Betting Control and Licensing Board to the GRA was broadly welcomed. What operators did not anticipate was a fee structure that pushed some licence categories up by close to 50,000%.
Kipruto’s assessment, that the government is deliberately consolidating the market around operators with the capital to absorb the new requirements, is supported by the numbers. More than 150 firms hold licences today, and fewer than 40 could realistically meet a Ksh100 million capital floor at short notice. Opar noted in his court filing that several operators were already reviewing whether to continue trading, with closure a real possibility for those unable to meet the thresholds.
The 2 October judgment will clarify whether the fee structure stands, is reduced, or is struck down entirely. Until then, the GRA holds its oversight powers but not its full financial toolkit, and Kenya’s reformed gambling sector remains caught between a law that has passed and a framework that has not yet been settled.
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