SportPesa Halts Operations In Kenya After Months Of Fighting

It is now over, a clear message from the giant gaming company SportPesa as it halts its operations in Kenya over what it termed as unfriendly environment and frustrations from the government.

SportPesa and other betting firms have been at loggerheads with the government, through the Betting Control and Licensing Board (BCLB) and the Ministry of Interior after their operational permits were canceled.

Kenya Revenue Authority (KRA) claimed that SportPesa was not remitting taxes as required by the law, something that prompted the government to suspend the license. Efforts by the gaming company to fight its way back seem to have hit a dead-end, and now, it is going.

“SportPesa is disappointed with the decision by the Kenyan legislature to impose a 20 percent excise tax on all betting stakes,” said SportPesa in a statement on their website.

According to SportPesa, the 20 percent withholding tax is based on a fundamental misunderstanding by the Rotich led treasury of how revenue generation works in the bookmaker industry.

“This decision will have a damaging impact on both customers and treasury. Further compounded by the currently in-effect 20 percent Withholding Tax on Winnings, the economic incentive to place bets will be completely removed as the taxes will deprive consumers of their total winnings,” said the seemingly furious SportPesa.

SportPesa says the decision to tax the betting stakes will have severe consequences for licensed betting companies, which dutifully pay their taxes and ultimately will lead to a decline in government tax revenue to near zero and will halt all investments in sports in Kenya.

“Until such time that adequate taxation and non-hostile regulatory environment is returned, the SportPesa brand will halt operations in Kenya,” said SportPesa.

As SportPesa exits the Kenyan market, thousands of Kenyans have been left without jobs especially those who specifically ran SportPesa shops across the country. Kenyan football teams such as AFC Leopards and Gor Mahia have been left without sponsorships.