Kenyan operators call upon their government to annul licensing fees and capital requirements

The Association of Gaming Operators Kenya (AGOK) has urged the government to annul certain parts of the nation’s new gambling regulatory framework.

In an appearance at the Kenyan Senate Committee on Delegated Legislation last week, AGOK’s Vice Chairperson Paul Mutegi highlighted the controversial increases in licensing fees and capital requirements.

AGOK claimed the regulations weren’t developed according to Part II of Kenya’s Statutory Instruments Act, which states that prior to a regulation-making authority creating a statutory instrument, it must first be subjected to consultation by those likely to be affected.

“AGOK has raised these matters with the Executive,” Mutegi said. “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.”

Mutegi and AGOK’s concerns over the lack of consultation over the new regulations were echoed by Ben Lawrence, the CEO of Kenya’s Jockey Club, who said that even where stakeholders had submitted their views, they hadn’t been considered.

In response, the committee said it would engage additional stakeholders before preparing a report to be considered by Kenya’s parliament.

Why are the additional fees so controversial?

In 2025, Kenya’s Gambling Control Act established the Gambling Regulatory Authority and introduced a new regulatory framework intended to usher in a new era for the sector.

Replacing legislation dating back to 1966, the act also appeared to bring an end to years of industry turbulence following repeated changes to gambling tax rates.

But in July this year, the Kenyan industry once again faced uncertainty after the High Court of Kenya signed a stay order, effectively suspending the market’s new gambling licensing framework.

David Sarinke, a partner at the Kenya law firm McKay Advocates, told iGB the order stemmed from a constitutional argument, which claimed the final capital requirements and licensing fees were higher than those subjected to public consultation. While that stay order was partially lifted, allowing the licensing process to proceed, the licensing fees and capital requirements remain under the spotlight.

Under the previous regulatory framework, iGaming operators generally paid just over Ksh10,000 ($77) to submit a licence application, followed by annual licence fees ranging from approximately Ksh400,000 to Ksh1 million.

The new regime represents a substantial increase in costs. The application fee for an online bookmaker licence has risen to Ksh5 million, while the licence fee has been set at Ksh50 million. However, licences now run for three years, replacing the previous system of annual renewals.

According to the initial application for a stay order, licensing costs have increased by between 200% and 49,900%.

Operators also face a new minimum gambling capital requirement of Ksh100 million for online bookmakers and iGaming businesses, adding another significant financial burden to the licensing process.

At the committee hearing last week, AGOK warned the new fees effectively amounted to taxation and risked creating barriers to entry for operators seeking a licence.