Kenyan Operators Press Government to Void New Gambling Licence Fees and Capital Rules on Procedural Grounds
AGOK urged annulment of new Kenyan gambling licensing fees and capital requirements, arguing the rules bypassed mandatory consultation under the Statutory Instruments Act. Mutegi detailed unanswered correspondence from July and August 2026. The Senate committee pledged further stakeholder input before reporting to parliament.
SCCG Take — Unaddressed procedural flaws risk sustained legal friction and deter market entry. Regulators must complete genuine consultation or face continued industry resistance.
The Association of Gaming Operators Kenya (AGOK) has urged the government to annul key elements of the new gambling regulatory framework, citing sharp rises in licensing fees and capital requirements imposed without proper consultation.
Paul Mutegi, AGOK vice chairperson, presented these objections to the Kenyan Senate Committee on Delegated Legislation last week. Mutegi said the rules contravene Part II of the Statutory Instruments Act, which requires consultation with affected parties before issuance.
Mutegi said: “AGOK has raised these matters with the Executive. It wrote to the Office of the Prime Cabinet Secretary on 15 July 2026 and again on 6 August 2026. The Office forwarded the concerns to the Gambling Regulatory Authority on 11 August 2026 and proposed a round-table discussion. However, no engagements have taken place to date, despite AGOK's requests.”
Ben Lawrence, CEO of Kenya’s Jockey Club, echoed the position that even submitted stakeholder views had not been considered. The committee responded that it would engage additional stakeholders before finalising a report for parliament.
Scale of Increases Under the 2025 Gambling Control Act
The 2025 Gambling Control Act created the Gambling Regulatory Authority and replaced legislation dating to 1966. A High Court stay order in July 2026 suspended the new licensing framework; the order was later partially lifted, leaving the fee levels in dispute.
Prior fees required just over Ksh10,000 ($77) for an application and annual licence costs from Ksh400,000 to Ksh1 million. The current structure sets an online bookmaker application fee at Ksh5 million and a three-year licence fee at Ksh50 million. Operators must also maintain Ksh100 million in minimum capital.
Initial court filings record licensing cost increases between 200% and 49,900%. AGOK warned the sums operate as taxation and erect barriers to entry, as reported by iGaming Business.
Risks of Unresolved Consultation
The procedural objections create a clear risk of renewed legal action and reduced participation. Operators already navigating earlier tax volatility may defer market entry or scale back while the framework remains contested.
The committee’s commitment to wider engagement offers a route to reconcile the rules with industry realities. Until that process concludes, the elevated thresholds will continue to constrain rather than stabilise Kenya’s gambling sector.
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