Kenya Licensing Reset Stalls After High Court Order
Justice William Musyoka granted the stay after Thomas Buckley Opar Owuor and Ken Brance filed a judicial review application. The respondents are Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi, the Gambling Regulatory Authority and the Attorney General.
Payment Enforcement Stops With the Framework
The order also prevents the GRA from enforcing directives requiring mobile money providers such as Safaricom and Airtel to deactivate payment channels used by operators deemed non-compliant with the suspended regulations. The restriction will remain in place until the court orders otherwise.
In effect, licensed operators have gained temporary protection from enforcement measures based on the suspended regulations. The ruling has also interrupted Kenya’s first licensing cycle under the Gambling Control Act 2025.
Higher Entry Costs Move Into Court
The regulations were published in the Kenya Gazette on June 30. The GRA formally opened the first licensing cycle under the new framework on July 3, while existing licenses were allowed to remain valid for 60 days from publication.
The final fee structure imposed a KES 50 million license fee on online casinos and online bookmakers. Each category also faced a KES 5 million application fee and a KES 5 million annual operating fee. The regulations required online casino and betting operators to maintain at least KES 100 million in gambling capital.
Advertising regulations added another cost. Cross-county media promotions and advertising required a KES 50,000 application fee, alongside an approval fee equal to 6% of the advertising budget.
The applicants argue that the financial burden could lead some licensed companies to close. They also challenge the shorter appeal period and provisions making payments to the regulator non-refundable.
Consultation and Ministerial Authority Face Scrutiny
Fees are just one aspect of the case. According to Owuor and Brance, parts of the final framework were introduced without adequate public participation.
Further, they doubt whether Mudavadi has the legal mandate to make such regulations. The reason is that, according to the Gambling Control Act, regulation-making powers belong to the Cabinet Secretary responsible for the gaming sector.
The court has not yet made any decision on either claim. The present order preserves the status quo while the judicial review proceeds.
September Date Extends Market Uncertainty
The applicants have 14 days to file their substantive judicial review motion. The regulator, government bodies and other parties will then have 14 days to submit their responses. The matter is scheduled to return to the High Court on September 21 for directions on how the case will proceed.
Kenya’s Gambling Control Act remains in force, but the regulations needed to operate its new licensing system are now suspended. The immediate issue is therefore legal authority and procedure, rather than the policy goal behind the reform. Until the court clarifies those questions, operators face uncertainty over license applications, compliance spending, and future access to payment services.