High Court of Kenya Suspends 2026 Gambling Control Regulations
The High Court of Kenya has issued a stay order against the implementation of the Gambling Control (Licensing) Regulations, 2026.
The Kenyan iGaming sector began transitioning to the new regulatory framework with the enactment of the Gambling Control Act, 2025, and the appointment of board members on October 24, 2025. The subsidiary regulations, covering licensing and operations, were signed by Prime Cabinet Secretary Musalia Mudavadi on June 29, 2026, published the following day, and came into effect on July 3, 2026.
However, just three weeks later, on July 20, 2026, Justice W. Musyoka granted a stay order suspending the regulations pending judicial review by industry stakeholders. The order was issued in a case filed by Thomas Buckley Opar Owuor and Ken Brance.
The legal challenge targets the authority of the regulations, naming the Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, Hon. Musalia Mudavadi, the Gambling Regulatory Authority (GRA), and the Attorney General as respondents. Interested parties include the Association of Gaming Operators Kenya (AGOK) and Safaricom PLC.
At the core of the dispute is a significant and controversial fee structure. The applicants describe the new fees as “unprecedented,” with increases ranging from 200% to a staggering 49,900%. For example, land-based bookmaker license renewal fees surged from KES 5,000 to KES 2,500,000, while online casino and bookmaker licenses are now set at KES 50,000,000. Additionally, the regulations introduced a 6% advertising approval fee on all gambling-related marketing budgets.
The applicants argue that the regulations were formulated without adequate public participation. Mr. Owuor’s affidavit states that there was no objective public participation in the formulation of the impugned regulations, and they criticize the Regulatory Impact Statement (RIS) for failing to demonstrate meaningful consultation. Specifically, they contend the RIS did not disclose whether it was published for comment, nor did it identify respondents or summarize their submissions. They further argue that the RIS did not objectively quantify the financial impact of the new fees on operators, rendering the “evidence-based assessment” insufficient.
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Legal questions also arise regarding the authority to enact such regulations. While the regulations were signed by Mudavadi, the Gambling Control Act, 2025, vests the power to make regulations solely in the Cabinet Secretary responsible for gambling. The applicants contend there is no constitutional instrument explicitly assigning gambling regulation to Mudavadi, raising concerns about the legality of the regulations’ formulation.
Industry stakeholders warn that the implementation of these rules could lead to mass closures of the approximately 188 licensed operators. Mr. Owuor stated that such closures would cause “redundancy and loss of livelihoods for thousands of Kenyan employees and their dependents.” The stay order also halts the Gambling Regulatory Authority from enforcing directives to mobile money operators like Safaricom and Airtel to deactivate payment channels for non-compliant operators.
The High Court has directed the applicants to file a substantive motion within 14 days. The case is scheduled for mention on September 21, 2026, to determine further proceedings.
For now, the stay order effectively prevents the government from enforcing the Gambling Control (Licensing) Regulations, 2026.
