This archive report was first published on 17 July 2019.
On July 12, the government ordered Safaricom to stop processing payments for sports betting companies, effectively shutting down SportPesa and its rival Betin Kenya. The move was a result of the State's decision to deny the two firms licenses to operate.
According to court documents, SportPesa and Betin Kenya have been operating despite being denied licenses by the State. The two firms have court orders allowing them to continue operating, but the State has refused to recognize these orders.
On Tuesday, High Court judge Weldon Korir declined the betting firms' plea for bosses at the Betting Control and Licensing Board (BCLB) to be punished for contempt of court. Instead, he ordered that the betting board, along with mobile communication operators Safaricom and Airtel, be given time to respond to the case before any punishment is arrived at.
“The order to unfreeze paybill numbers will amount to determining the contempt application without giving a hearing to the betting board; I will therefore not issue any of the orders sought, it's only just that BCLB, Safaricom and Airtel are given time to respond,” said Justice Korir.
Both SportPesa and Betin Kenya are seeking compensation for the lost business and breach of fundamental rights. They are also seeking to have the suspension of their payment systems lifted and the chairman and top executives of BCLB jailed or fined for ordering the switch-off despite the court order.
According to the court documents, the two firms have been denied licenses because of tax demands for the period between May 2014 and March 2019. However, the court had stopped the demands and allowed the firms to continue operating pending the conclusion of the suit.
On July 17, 2019, SportPesa filed a petition in the High Court seeking compensation for the lost business and breach of fundamental rights.
