COFEK Escalates Bid to Oust Gambling Boss Karimi as Fresh Court Battle Puts GRA Leadership Under Siege

Pressure is mounting on Gambling Regulatory Authority (GRA) Director General Peter Maina Karimi after the Consumers Federation of Kenya (COFEK) announced it will join the constitutional petition seeking to overturn his appointment, thrusting the regulator into an escalating legal and governance crisis just days before one of the industry’s most critical licensing decisions.

The consumer lobby says it will seek to be enjoined as an interested party in the case filed by Patrick Mwashigadi before the Constitutional and Human Rights Division of the High Court.

While the petition initially focused on whether Karimi met the legal qualifications for appointment, COFEK’s intervention broadens the dispute into a far-reaching public interest battle over consumer protection, regulatory independence and alleged conflicts of interest at the country’s gambling watchdog.

According to COFEK, more than 15 million Kenyans who participate in betting and gaming could be affected if questions surrounding the leadership of the regulator are left unresolved.

The federation argues that any uncertainty at the top of the GRA threatens licensing, enforcement, consumer complaints, responsible gambling measures and protections for vulnerable groups, including minors and individuals suffering from gambling addiction.

The federation says it will ask the court to ensure that, regardless of the outcome of the petition, the regulator continues performing its statutory functions while directing the GRA Board to undertake an expedited, lawful, transparent and merit-based recruitment process if the appointment is found to be defective.

COFEK has also raised concerns over what it describes as the need for a regulator whose independence is beyond question, warning that the line between industry experience and regulatory capture must never be blurred. It argues that the country’s gambling regulator must be free from any actual or perceived conflict of interest with licensed betting firms.

Its intervention comes only three days before the June 30 deadline for the GRA to publish the licensing register for 99 gambling operators, dramatically increasing scrutiny over Karimi’s continued tenure.

Karimi was appointed Director General on February 26, 2026, following a competitive recruitment process conducted by the GRA Board chaired by Joseph Kirui Limo. The board highlighted his extensive experience in gaming, telecommunications, mobile technology, digital payments and financial services.

However, the appointment has become the subject of fierce legal challenge over allegations that his previous roles in the betting industry should have disqualified him under the Gambling Control Act, 2025.

Court documents filed by Mwashigadi allege that Karimi founded Acumen Communications Limited and served as Chief Executive Officer of mCHEZA, a licensed betting platform launched in partnership with INTRALOT and Safaricom’s M-Pesa. The petition argues that he remained closely associated with the company until shortly before assuming office, allegedly falling within the Act’s five-year cooling-off period designed to prevent the revolving door between gambling operators and the regulator.

The petition further alleges that Karimi served as a director of Umsuka Capital Limited, a financial services company linked to mCHEZA’s operations, whose services were later shut down by the Communications Authority of Kenya over regulatory non-compliance.

Lawyer Abdirahman Mohamed, representing the petitioner, argues that the alleged failure to fully disclose these industry links rendered the appointment unlawful from the outset. Karimi’s legal team, led by Moureen Lagat, has challenged the case, maintaining that the dispute falls within the jurisdiction of the Employment and Labour Relations Court rather than the Constitutional and Human Rights Division.

Beyond the courtroom, concerns are intensifying over Karimi’s ability to independently oversee licence renewals involving companies that were once his competitors.

Industry observers have questioned whether the Director General can objectively supervise operators with whom he previously shared commercial relationships, particularly at a time when several major betting firms face regulatory, financial and criminal scrutiny.

Among the companies attracting attention is MozzartBet, whose licence renewal falls under the GRA’s current review process. The operator was previously linked to litigation that culminated in the forfeiture of KSh256 million to the State after the Court of Appeal upheld findings that the funds were connected to a money laundering scheme involving shell company Kimaco Connections Limited.

Betika and its affiliate Odibets have also faced criminal investigations involving allegations of illegally acquired subscriber data, while both Betika and SportPesa have separately faced enforcement action by the Office of the Data Protection Commissioner over data protection violations.

Under the Gambling Control Act, the GRA is required to conduct extensive due diligence on licensees, directors, shareholders and beneficial owners before approving licence renewals, making the regulator’s independence central to public confidence in the process.

Critics argue that these are precisely the circumstances the new law was enacted to address following years of criticism directed at the former Betting Control and Licensing Board, whose regulatory failures were repeatedly blamed for weak enforcement and alleged industry influence.

Additional questions have been raised over Karimi’s own public policy positions since taking office. During appearances before Parliament and at industry conferences, he has advocated for tighter regulation while opposing the reintroduction of a 20 percent withholding tax on gambling winnings, a position that mirrors arguments advanced by betting industry lobby groups.

While those views are not unlawful, critics argue they reinforce concerns about the appearance of alignment with an industry he is now tasked with regulating.

The GRA has yet to publicly disclose any recusal framework explaining whether Karimi has stepped aside from decisions involving operators with whom he previously had commercial relationships. Neither has the authority published detailed criteria showing how ongoing criminal proceedings, beneficial ownership concerns or anti-money laundering compliance are being assessed during the current licensing exercise.

COFEK’s decision to enter the case significantly raises the political and legal stakes.

By shifting the focus from an individual appointment to the integrity of Kenya’s gambling oversight regime, the federation has transformed what began as a qualifications dispute into a broader accountability test for the regulator, its board and other oversight institutions.

The Ethics and Anti-Corruption Commission could independently examine whether the appointment complied with conflict-of-interest laws, while the Financial Reporting Centre retains oversight over anti-money laundering compliance across the gambling sector. Parliamentary committees, which have already questioned Karimi since his appointment, are also likely to face renewed pressure to demand full disclosure of recusal decisions and licensing criteria before the June 30 publication of approved operators.

With the licensing deadline fast approaching, the outcome of the legal battle could shape the credibility of Kenya’s gambling reforms for years to come.

For COFEK, the issue extends far beyond one individual. The federation argues that public confidence in the regulator will ultimately depend on whether the courts, Parliament and oversight agencies demonstrate that no official, regardless of background or influence, is above the transparency and accountability standards the Gambling Control Act was enacted to uphold.