High Court Allows Gambling Regulator to Collect Licensing Fees Amid Legal Battle

Kenya’s High Court has authorized the Gambling Regulatory Authority of Kenya (GRAK) to resume collecting licensing fees from betting firms, casinos, and other gaming operators while a legal dispute over these fees continues.

Background of the Dispute

On August 7, 2026, the court initially halted the implementation of new fees introduced under the Gambling Control (Licensing) Regulations, 2026, effectively freezing the licensing process. However, this week, the judge reversed the freeze, allowing GRAK to move forward with fee collection as the main case proceeds.

Reasons for Resuming Fee Collection

• Operational Standstill: GRAK argued that suspending fees prevented it from processing new license applications, leaving 246 applications in limbo.
• Legal Gap: The judge noted that the fees are only stipulated in schedules attached to the new regulations and not directly in the Gaming Control Act, 2025, which replaced the old Betting, Lotteries and Gaming Act.
• Public Interest: Leaving the gambling sector unregulated during the court process was deemed detrimental to public interest.
• Refund Assurance: GRAK promised to refund fees if the court eventually rules the regulations or fees unlawful.

Opposition to Fee Collection

The petitioners, Thomas Buckley Opar Owuor and Ken Brance, challenged the legality of the increased licensing fees and questioned the Cabinet Secretary for Foreign and Diaspora Affairs, Musalia Mudavadi’s authority to enact the regulations.

They argued that the fee hikes could force some operators out of business, cause job losses, or burden firms with debt. They also contended that refunds would not compensate for the immediate economic harm.

The petitioners further disputed claims that licensing had stalled, stating that GRAK continued processing applications and collecting fees until the new regulations took effect on June 29, 2026.

Government’s Position

Officials maintain that the regulations are essential to implement the Gaming Control Act, which came into force in August 2025 and established a new framework for licensing and regulating gambling businesses.

GRAK emphasized the regulations provide necessary details on license categories, application procedures, financial and technical requirements, and renewal rules.

Next Steps

The legal tussle began in July 2026 with the initial suspension of the regulations. Following a review requested by the Attorney General, most regulations were reinstated except for the increased fees and capital requirements.

GRAK’s subsequent court application highlighted the operational challenges caused by the partial freeze, leading the judge to allow fee collection.

The court will revisit the main case on September 21, 2026, to decide on the final outcome and costs.