(AsiaGameHub) –   Kenyan gambling operators and industry groups have voiced fierce opposition to the government’s proposed 2026 licensing legislation, cautioning that it might severely disrupt the sector. Stakeholders labeled the intended fee framework as “unreasonable, unprecedented, and punitive,” pointing to worries about escalating operational expenses.

These concerns were shared during public consultation meetings organized by the Gambling Regulatory Authority at the Kenyatta International Convention Centre from March 31 to April 1, 2026.

A major area of disagreement is the proposed fee structure, which features steep application costs, higher security bond obligations, and a new 10% levy on advertising expenditures. Operators contend these additions would pile onto existing taxes and impose unsustainable strain on licensed businesses. Many warned that such measures could push operators toward offshore markets, reducing tax revenues and weakening regulatory oversight.

Industry representatives also drew attention to potential economic impacts, including business closures and job losses.

Paul Mutegi from the Association of Gaming Operators in Kenya (AGOK) stated:

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.

Questions were also raised regarding inconsistencies in the proposed fee structure.

Judith Kiragu challenged the rationale behind the application fee exceeding the license fee, noting:

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?

Further criticism focused on capital requirements for foreign operators, including a KES100 million paid-up capital threshold and a KES200 million security bond.

John Mutua also pushed back against new fees on jackpot products, commenting:

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 additionally criticized proposed compliance measures—such as 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 their primary concerns as regulators.

The consultation period is scheduled to close on April 13, 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.