Sportpesa is considering closing down their operations in Kenya following the implementation of the tax law on gambling and betting companies.
The giant gaming firm may shift its headquarter to Tanzania or the United Kingdom (UK).where tax law is more favourable.
SportsPesa Global chief executive officer (CEO) Gerasim Nikolov said the company can no longer operate profitably under the current taxation regime.
“There is nowhere in the world where such a huge tax is levied on turnovers and even here in Kenya, no firm can survive today if a 35 per cent tax was put on its turnover.
“Unfortunately, the ultimate effect of us shifting operations from here will be wide considering the various business that depend on this industry,” said Mr Nikolov at a media briefing Friday
The company’s move is expected to affect thousands of Kenyans who directly depend on it for survival. But the management has reiterated that the 35 % tax imposed on them is unfavourable and meant to push them out of the business.
Last month, Sportpesa announced that they will cancel all sponsorship to various teams across the globe. The move will be effected in January.
