Kenyan High Court’s Decision
The High Court in Kenya has temporarily halted the Gambling Control (Licensing) Regulations set for 2026. The move follows the introduction of the Gambling Control Act, 2025, which set a new legal framework for the country’s iGaming industry. Prime Cabinet Secretary Musalia Mudavadi had endorsed the licensing rules on June 29, 2026, with enforcement starting on July 3, 2026. However, on July 20, 2026, Justice W. Musyoka issued a suspension following a legal challenge by industry players.
Controversial Fee Structures
The heart of the dispute lies in steep fee increases. Critics argue that fees rose by unprecedented amounts, with land-based bookmakers facing surges from KES 5,000 to KES 2,500,000. Online operators face a license cost of KES 50,000,000, alongside a 6% advertising levy. The increases have sparked opposition due to a lack of public consultation and unclear financial impacts, according to affidavits filed in the case.
Legal Concerns Over Regulatory Authority
The authority under which these regulations were enacted is being questioned. The Gambling Control Act, 2025 assigns regulation-making power to the responsible Cabinet Secretary, leaving questions about Mudavadi’s role. This has led to concerns about the regulations’ legality, as officials involved have been named in the ongoing legal challenge.
Industry Reactions and Implications
Industry stakeholders have expressed alarm about the regulations’ potential impact. The possibility of mass shutdowns among the 188 licensed operators could lead to widespread job losses. Officials from the Association of Gaming Operators Kenya have voiced their fears, highlighting the broader economic and social impacts.
Next Steps in the Legal Process
The High Court has instructed the applicants to present a formal motion within 14 days. A court mention is set for September 21, 2026, to assess future proceedings. Meanwhile, the suspension prevents the enforcement of directives against mobile money services linked to non-compliant operators, maintaining the status quo for now.
Conclusion
Kenya’s gambling industry faces a turbulent period following the suspension of new regulations, reflecting ongoing tensions between regulatory ambitions and industry realities. As legal proceedings unfold, stakeholders remain attentive to the possible outcomes that could reshape the marketplace.