Kenya’s biggest betting firm SportPesa has released a statement showing their disappointment in the new taxation policies.
“Sportpesa is disappointed with the decision by the Kenyan legislature to impose a 20% excise tax on all betting stakes. The tax is based on a fundamental misunderstanding by National Treasury CS Henry of how revenue generation works in the bookmaker industry,” read part of the release.
The brand has therefore stopped its operations until the government puts in place more friendly terms on the same.
“Until such time that adequate taxation and non-hostile regulatory environment is returned, the SportPesa brand will halt operations in Kenya,” another section read.
The firm further argued that the imposed tax could have dire consequences on betting firms which are tax compliant.
This Sportpesa said could ultimately lead “to a decline in government tax revenue to near zero and will halt all investments in sports in Kenya.”
Betin on the other hand declared its staff redundant on Friday.
“This has been occasioned by the fact that we have not been operational since July 2019 a fact we are all aware of. Management has had several extensive meeting with relevant government entities regarding the company’s license renewal without much success,” a memo dated September 27 read.
Some of the betting companies cleared by the Kenya Revenue Authority for licensing by Betting and Licensing Control Board include; Betway, OdiBets, Mozzartbet, Ken Bookmakers, Lucky 2u, Eazi Bet, Kick off, Eastleighbet, Palms Bet and Bet boss.
Interior CS Fred Matiang’i in April gave all firms three months up to July 1 to seek fresh renewal of licenses upon proving tax compliance.