⚠️ Kenya🇰🇪: High Court suspends new gambling licensing framework over alleged regulatory irregularities

⚠️ Kenya🇰🇪: High Court suspends new gambling licensing framework over alleged regulatory irregularities

Kenya's High Court has suspended the country's new gambling licensing framework after finding grounds to examine allegations of irregularities in the regulatory process. At the center of the dispute are the minimum share capital requirements, which were significantly increased in the final version of the regulations compared with the draft presented during the public consultation. The issue is the basis of a legal challenge filed by a Nairobi-based law firm.

➡️ The petitioners argue that the changes violate Kenya's 2010 Constitution, as Article 10 establishes public participation as a national value and a fundamental principle of governance that must be respected throughout the regulatory process.

➡️ The new Gambling Control Act, which entered into force on June 30, replaced the regulatory framework dating back to 1966 and transferred oversight of the sector to the newly established Gambling Regulatory Authority (GRA). However, the court's decision has effectively halted the operations of companies that had already obtained licenses under the new law, while operators without licenses remain unable to conduct business.

➡️ The case also reflects concerns among small and medium-sized operators, which argue that the new capital requirements create significant barriers to entering the regulated market.

➡️ The court proceedings are expected to continue for several months. In the meantime, the GRA, the Government of Kenya, and the Association of Gaming Operators of Kenya (AGOK) have 14 days to file their responses. The next court hearing has been scheduled for September 21.

➡️ Context: according to Mordor Intelligence, Kenya is currently the fastest-growing gambling market in Africa, with a projected 12.96% compound annual growth rate (CAGR) through 2031 and an estimated 1.6 million active players by 2029.

#news #Africa #gambling

🌎 payplanet.com verified partner for LatAm, India🇮🇳 Turkey🇹🇷 @pay_planet