Breaking News from Sportpesa indicates that the company has quit the Kenyan market.
This morning, the giant betting firm was informed by the government that its license won’t be renewed. Consequently, Sportpesa closed down it’s Kenyan website, marking the end of its operations in the country.
Here is a statement from Sportpesa concerning the closure of business:
“This tax decision will have a damaging impact on both customers and treasury. Further compounded by the currently in-effect 20% Withholding Tax on Winnings, the economic incentive to place bets will be completely removed as the taxes will deprive consumers of their total winnings. This 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.
Earlier this month, KRA had cleared Sportpesa, giving it a go ahead. Sportpesa applied for a new license from BCLB only to be notified yesterday that their license will not be renewed. Today morning, sources at the company told us that Sportpesa has resolved to quit the Kenyan market to concentrate on UK and Tanzanian business.
Before the closure of its paybill numbers, Sportpesa was sponsoring Gor Mahia, the Kenya Premier League and AFC Leopards. But after the government grounded its operations, Sportpesa was forced to stop sponsoring the teams.
Sportpesa had employed over 500 workers directly and over 20,000 others indirectly.The newest development means that they will lose jobs or seek employment elsewhere.
From today henceforth Sportpesa won’t existing in the Kenyan market, leaving Beika, Odibets,Betway and other small betting firms to thrive.