This archive report was first published on 13 July 2019.
Kenya's betting industry is in turmoil after the government intensified its crackdown on unlicensed operators. The Interior Ministry has ordered the arrest of anyone caught operating without a license, and mobile phone companies have blocked the paybill numbers of 27 affected firms.
According to sources within the betting industry, the 27 affected firms are considering laying off staff starting next week. A source at SportPesa, one of the affected companies, revealed that as many as 600 members of staff could be laid off starting Monday.
“Approximately 400 employees at our call centre will be affected as well as 100 technical staff based at Sameer Business Park on Mombasa Road. Also at risk are at least 60 marketing staff spread across the country and up to 40 managers,” the source said.
On Thursday, the Betting Control and Licensing Board (BCLB) gave gamers 48 hours to withdraw their money before the government shuts down the pay bill numbers. This deadline expires Saturday.
Interior CS Fred Matiang’i has directed regional police commanders to arrest owners of betting firms operating in their regions without licenses. He said that if the firms do not have a license, they are engaging in crime.
“Get hold of them and let them meet with the law so that we can create an orderly environment,” said Dr Matiang’i.
Several firms, including SportPesa and Betin, have denied any wrongdoing and claimed to have complied with all tax obligations. SportPesa has enjoyed a roaring success since it set up shop in Kenya in 2014 and has become one of the fastest growing companies in the East African region.
It would quickly step forward to the international stage after it announced a Sh1.3 billion sponsorship deal with Everton FC. The firm would also set up a global headquarters in Liverpool.
Before it shot to global fame, it had entered into smaller deals with Arsenal, Southampton, Hull City football clubs as well as with teams in the Spain and Italy’s leagues.
The shutdown affects 12 million betting accounts, according to Safaricom, with SportPesa and Betin among the biggest losers.
