SportPesa Fails In Its Plans To Renew License In Kenya

By Clinton Ochieng

Pevans East Africa, the company that operated under the sportpesa gaming brand has lost its bid to renew its license. This is another major blow to the gaming giant that had already started operations in Kenya after folding up.

SportPesa sought to compel the Betting Control and Licensing Board (BCLB) to renew its license. The appellant court on Friday upheld the decision of High Court Judge John Mativo to dismiss Pevans’ application that challenged the regulator’s refusal to issue them with a new license.

SportPesa license was suspended on July 1, 2019, referring to non-payment of withholding taxes, among other reasons. The company said its rights were violated since the tax demands from the Kenya Revenue Authority (KRA) were disputed, adding that other betting firms’ licenses were renewed.

Court of Appeal Judges Hannah Okwengu, Fatuma Sichale, and Roselyn Nambuye rejected Pevans’ arguments, saying the regulator is empowered to take enforcement action on individual firms, including asking for proof of tax payments.

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The KRA had originally issued a 15 billion shillings tax demand on Pevans and has consequently revised the amount upwards to 95 billion shillings.

The decision by the appellant court is likely to lock out the company from the betting business indefinitely. As Pevans was fighting in court to regain its operating license last year, some of the shareholders acquired a newly formed company called Milestone Games Limited to which they transferred the famous SportPesa gaming brand.