High Court allows gambling regulator to implement contested fees

Court Adjusts Suspension to Allow Regulatory Functions

The High Court has revised its July 20th order, which initially imposed a complete halt on the 2026 Gambling Control Regulations. The regulatory body successfully petitioned the court to limit the scope of this stay, arguing that a total pause severely restricted the Gambling Regulatory Authority of Kenya (GRAK) from performing its essential duties under the 2025 Act. These critical responsibilities include processing license applications, enforcing anti-money laundering measures, safeguarding consumers, and cracking down on illegal offshore betting operations.

Peter M. Karimi, the Director General of GRAK, emphasized to the court that subsidiary legislation is crucial for the 2025 Act to function properly. While the applicants argued that the Act's existing transitional clauses provided enough of a framework, the regulator maintained that those sections lacked comprehensive procedures for handling new license applications or enforcing new technical standards. Recognizing this need, the court has allowed the majority of the new framework to be implemented and enforced while the legal dispute continues.

Massive Fee Hikes Remain Paused Ahead of October Ruling

Although the broader regulatory framework can now move forward, the court maintained the suspension on the highly controversial financial stipulations. Specifically, the proposed licensing fee hikes found in the Second Schedule—which introduced unprecedented increases ranging from 200% to 49,900%—and the new gambling capital requirements in the Third Schedule will remain entirely on hold. Justice Musyoka noted that the legal challenge was targeted specifically at these financial burdens rather than the regulations as a whole.

The ongoing legal battle over these massive cost increases is set to proceed through written submissions, which both parties must file and exchange by September 21, 2026. A final judgment on the disputed fees and capital rules is scheduled to be delivered via the court’s Case Tracking System on October 2, 2026. Until that ruling is issued, Kenya’s new gambling framework will operate partially, with the controversial financial barriers suspended.