Kenyan Gambling Operators Urge Senate to Annul New Licensing Rules Over High Fees

Kenya's gambling industry has challenged new licensing regulations, arguing that excessive capital requirements and regulatory fees could restrict market access. The Senate has agreed to consult additional stakeholders before making its recommendations.

Kenya's Association of Gaming Operators (AGOK) has called on the Senate to annul selected provisions of the Gambling Control Regulations, 2026, citing concerns over financial requirements and alleged procedural irregularities.

On November 3, AGOK Vice Chairperson Paul Mutegi appeared before the Senate Committee on Delegated Legislation to present the industry's objections.

Under the contested framework, online betting operators must maintain minimum capital of KSh100 million, while land-based bookmakers face a KSh50 million requirement. Online operators also face a KSh50 million licensing fee, alongside separate application and annual operating charges.

AGOK argues that these costs create barriers to market entry and that certain fees effectively function as taxation rather than payments for regulatory oversight.

The association also claims that parts of the regulations were introduced without complying with Kenya's Statutory Instruments Act and may conflict with existing legislation.

Mutegi explained that operators had raised their concerns with the government in July and August but had not received a substantive response from the Gambling Regulatory Authority.

The Jockey Club of Kenya separately criticised the consultation process, arguing that industry submissions had not been adequately considered.

Following the hearing, the Senate committee agreed to engage additional stakeholders before presenting its recommendations.

The dispute highlights growing tensions between regulatory objectives and market accessibility. Its outcome could influence licensing costs, competition and investment conditions across Kenya's gambling industry.