Kenya’s gambling licensing process can resume after the High Court partially lifted an order that had frozen implementation of the country’s new regulatory framework.
Justice William Musyoka narrowed the suspension imposed in July, allowing the Gambling Regulatory Authority of Kenya (GRA) to restart most of its licensing and supervisory functions. However, the higher licence fees and minimum capital requirements introduced under the Gambling Control (Licensing) Regulations 2026 will remain suspended while the court considers the full legal challenge.
The decision gives the newly established regulator permission to receive and process applications, carry out due diligence on operators and continue work covering anti-money laundering, consumer protection and general compliance.
The GRA and the Kenyan government had asked the court to reduce the scope of the original stay, arguing that a complete suspension left a gap in regulatory oversight and limited the authority’s ability to act against unlicensed businesses.
New licensing system back in operation
Kenya introduced the Gambling Control (Licensing) Regulations on 30 June 2026 as part of the wider Gambling Control Act 2025 reforms.
The rules created a centralised licensing structure under the GRA, which replaced the previous regulatory system. Existing operators were given a 60-day transition period to move onto the new framework.
The regulations also extended licensing requirements beyond traditional betting and casino operators to businesses including gambling software providers, platform suppliers, testing laboratories, equipment manufacturers and other companies operating within the gambling supply chain.
The High Court initially suspended the new regime in July following a challenge brought by Thomas Buckley Opar Owuor and Ken Brance. With most of that suspension now removed, operators can again move through the new application process while the disputed financial provisions remain unresolved.
Licence fees and capital rules remain frozen
The central dispute concerns the sharp increase in the cost of obtaining a gambling licence.
Under the new regulations, the application fee for an online bookmaker licence was raised to Ksh5 million, while the three-year licence fee was set at Ksh50 million. Under the previous system, operators generally faced much lower application and annual licensing charges.
The legal challenge claims some fees increased by between 200% and 49,900%.
Minimum gambling capital requirements are also suspended. Online bookmakers and online casino operators were expected to maintain Ksh100 million in gambling capital, while land-based bookmakers faced a Ksh50 million threshold.
Other categories carry different requirements. Casinos must hold at least Ksh100 million, while long-term public lotteries require Ksh150 million and national lottery operators Ksh2 billion.
Industry concerns centre on whether smaller operators can meet the new financial thresholds. Kenya already has a large number of licensed betting companies, although market activity remains concentrated among a smaller group of major operators.
Court challenge also targets consultation process
The case also questions how the capital requirements were introduced.
The applicants argue that some final thresholds were higher than those presented during public consultation, raising concerns over whether the process complied with Kenya’s constitutional requirements for public participation.
The government has presented documentation showing that consultations with stakeholders took place during development of the regulations. The High Court will decide whether that process was sufficient when it considers the substantive case.
For now, another issue facing operators is which licence fees should apply while the new rates remain suspended. The court did not set an interim structure, meaning further guidance from the GRA may be needed before applications can proceed smoothly.
Final judgment due in October
The wider judicial review remains active despite the partial lifting of the suspension.
Written submissions are due by 21 September, with the High Court scheduled to deliver its substantive judgment on 2 October 2026.
Until then, Kenya’s regulator can continue implementing most of the new licensing regime, while two of its most significant financial measures remain temporarily blocked.
The ruling gives the industry greater regulatory certainty after several weeks of disruption, but the final shape of Kenya’s new gambling market will depend heavily on the October decision over licence costs, capital requirements and the legality of the rulemaking process.