Kenya’s proposed gambling regulations have brought the cost of doing business in the betting industry into focus, with gaming operators now questioning whether the new licensing fees and capital requirements could make it harder for companies to operate in the sector.
The Association of Gaming Operators Kenya (AGOK) has raised concerns over the Gambling Control Regulations, 2026, arguing that some of the proposed requirements could place an unfair financial burden on licensed betting firms and create barriers for businesses seeking to enter the market.
The association wants the Senate to annul specific provisions of the regulations and recommend amendments, while ensuring that licensed operators are not left operating in a regulatory vacuum.
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Licensing fees and capital requirements under scrutiny
One of AGOK’s main concerns is the level of fees and minimum capital requirements introduced under the regulations.
The association argues that the amounts are too high and could go beyond the intended purpose of recovering costs for regulation, hence becoming a form of taxation on gaming businesses.
It also warns that the requirements could make it difficult for smaller operators to compete, hence limiting competition within the betting industry.
The concerns raise questions about how the government can regulate gambling while ensuring that compliance costs do not become an obstacle to legitimate businesses.
Questions over the law making process
AGOK has also challenged the process through which the regulations were developed, arguing that they did not meet the procedural requirements of Part II of the Statutory Instruments Act.
Appearing before the Senate Committee on Delegated Legislation on Tuesday, AGOK Vice Chairperson Paul Mutegi said the association had previously sought engagement with the Executive over its concerns but had not been successful.
“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,” Mutegi told the committee.
“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,” he added.
According to Mutegi, AGOK wrote to the Office of the Prime Cabinet Secretary on 15 July 2026 and again on 6 August 2026.
The office subsequently forwarded the concerns to the Gambling Regulatory Authority on 11 August 2026 and proposed a round table discussion.
However, Mutegi told the committee that no engagement had taken place despite the association’s requests.
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Horse racing industry raises public participation concerns
The proposed regulations have also drawn concerns from the Jockey Club of Kenya, which questioned whether stakeholders had been adequately involved in the process.
The organisation’s Chief Executive Officer, Ben Lawrence, told the committee that public participation had been inadequate.
Lawrence, whose organisation manages Thoroughbred horse racing in Kenya, argued that even where consultations had taken place, the views presented by stakeholders had not been sufficiently considered.
His submissions point to broader concerns about how regulations affecting different segments of the gambling industry are developed and whether those affected have a meaningful opportunity to influence the final rules.
Balancing regulation and business interests
The debate presents a wider policy question for Kenya’s gambling industry, that is how can the government strengthen oversight of betting activities without imposing requirements that make it difficult for licensed businesses to operate?
Following the submissions, the Senate Committee on Delegated Legislation resolved to engage additional stakeholders before preparing a report for consideration by the House.
The committee is chaired by Tharaka Nithi Senator Mwenda Gataya, with Tana River Senator Danson Mungatana serving as vice chairperson.
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