Gambling operators and industry bodies in Kenya have raised strong objections to the government’s proposed 2026 licensing bill, warning it could significantly disrupt the sector. Stakeholders described the planned fee structure as “unreasonable, unprecedented and punitive,” citing concerns over rising operational costs.
The concerns were voiced during public consultation sessions hosted by the Gambling Regulatory Authority at the Kenyatta International Convention Centre between 31 March and 1 April 2026.
A key point of contention is the proposed fee model, which includes high application costs, increased security bond requirements, and a new 10% levy on advertising spend. Operators argue these would add to existing taxes and place unsustainable pressure on licensed businesses. Many warned that such measures could drive operators toward offshore markets, reducing tax revenues and weakening regulatory oversight.
Industry representatives also highlighted potential economic consequences, including business closures and job losses.
Paul Mutegi from the Association of Gaming Operators in Kenya (AGOK) said:
We’re already a very heavily taxed industry, and you’re taxing the same base. The punters are still the same. So even the 15 per cent GGR that you know pays for sporting infrastructure that’s going to go away, or it’s going to take a very, very big hit. If indeed we push for this new cost regime.
Concerns were also raised about inconsistencies in the proposed fees.
Judith Kiragu questioned why the application fee exceeds the licence fee, stating:
The application fee is higher than the license fee. It is KES5 million ($38,684), while the license fee is KES4 million ($30,947). How can an application fee, which is just for obtaining a document, be higher than the license fee?
Additional criticism targeted capital requirements for foreign operators, including a KES100 million paid-up capital threshold and a KES200 million security bond.
John Mutua also opposed new fees on jackpot products, saying:
We propose to waive all the introduced fees. Jackpot is still a product like any other. You do not charge fees for any of the other products that we have.
Mutua further criticised proposed compliance measures, including quarterly capital adequacy checks, describing them as “too frequent” and burdensome for operators.
Despite the backlash, the GRA has defended the bill, arguing that Kenya’s gambling laws are outdated and require modernization. Director General Peter Karimi emphasized that consumer protection remains the priority, stating that player responsibility, responsible gambling and safeguarding players are thier primary concerns as regulators.
The consultation period is set to close on 13 April 2026, after which the final draft will move to Parliament. The outcome will play a key role in shaping the future of Kenya’s regulated gambling market.
