Companies

Nyeri betting firm sues over seizure of slot machines

slot

A man gambles using a slot machine at Nyalenda slums in Kisumu County. File Photo | Tonny Omondi | NMG

A betting company has moved to court to challenge the government’s decision to confiscate gambling and gaming slot machines.

Sonalla Investments, through lawyer Waweru Macharia, said Wednesday it has incurred losses after its premises in Nyeri County were shut down and gaming machines confiscated by officials from the Betting Control and Licence Board and the County Government.

The lawyer told Nyeri Resident Judge Jairus Ngaah that the government’s decision was unprocedural and amounts to unfair administrative action.

He complained that the Board and the devolved unit have refused to renew the company’s license to operate gaming slot machines despite the business being legitimate under Kenyan law.

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Harassment claims

Mr Macharia said the county administration police commander issued a directive of confiscation of the gaming machines on January 16, 2018 and that the company’s agents were harassed by State security officials.

Sonalla Investments notes that it had already paid an annual license fee of Sh100,000 to Nyeri County on August 29, 2017 under the County Alcoholic Drinks Control and Management Act 2014.

“Article 47 (1) of the constitution of Kenya entitles the petitioner to a fundamental and inalienable right to a lawful and procedurally fair administrative action. The respondents are in blatant violation of various provisions of the constitution and statutory laws,” said Mr Waweru today.

The company has listed the Attorney General as the third respondent after the Board and the County Government, arguing that the three are supposed to protect and safeguard its constitutional rights.

Mr Macharia further argued that the government's actions are discriminatory, claiming three other betting businesses have been issued with operational licences in the County.

“It is clear there is confusion as to who has the mandate to license and permit slot gaming machines and premises. The petitioner is tossed between the offices of the respondents with false promises of being licensed while they have long formed a prejudiced and discriminatory policy not to license the business and premises,” he said.

However, the lawyer’s application to have the court issue an injunction stopping closure of the business and the case certified urgent was rejected.

The company is also seeking compensation for the period it has not been in business due to denial of a licence.

Nyeri County, through lawyer Kamotho Njomo, asked for 14 days to file a response to the suit.

The case was adjourned to March 22, 2018.

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