Kenya’s High Court has postponed its ruling on a legal challenge to the country’s controversial new gambling licence fees, which were originally scheduled to be decided on 2 October. The court has instead granted three interested parties additional time to prepare their submissions and set a procedural mention for 12 October.
The applicants are challenging the Gaming Regulatory Authority’s 2026 rules, which introduced dramatic fee increases ranging from 200% to nearly 50,000%. Under the new structure, an online casino or bookmaker must now pay KES 60 million in the first year of operation, with KES 50 million of that amount allocated to the licence itself.
Fee Collection Proceeds Despite Legal Challenge
Despite the ongoing legal proceedings, the GRA has been authorised to collect the new fees since 24 August. The authority has provided assurances that it will issue refunds if the court ultimately strikes down the rules. This arrangement allows the regulator to continue operating under the new fee structure while the legal challenge progresses through the courts.
The judge presiding over the case has reportedly asked whether the applicants have standing in the matter, though the source material ends before completing this detail. This procedural question could prove significant in determining whether the challenge proceeds.
Capital Requirement Remains On Hold
While the new licence fees are being collected, the KES 100 million capital requirement that was also part of the 2026 rules remains suspended. This suspension provides some relief to operators who would otherwise face the dual burden of significantly increased licence fees and substantial capital requirements simultaneously.
The capital requirement suspension suggests the court may be taking a measured approach to the various components of the new regulatory framework, allowing some elements to proceed while keeping others on hold pending final adjudication.
Industry Implications
The delay in the court’s ruling extends the period of regulatory uncertainty for Kenya’s gambling industry. Operators who have already paid the increased fees face continued ambiguity about whether those payments will stand or be refunded, complicating financial planning and budgeting for the remainder of the year.
The scale of the fee increases has been particularly contentious, with the upper end of the range representing a nearly 50,000% rise. Such dramatic increases have raised questions about market accessibility and whether smaller operators can remain viable under the new cost structure.
The procedural mention scheduled for 12 October will provide the next indication of how the case will proceed and whether a final ruling might be forthcoming in the near term. Until then, operators must continue to navigate the current framework while the legal challenge remains unresolved.
