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SportPesa Sues Government Over Betting Losses

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 19 July 2019.

On July 3-9, 2019, English Premier League side Everton toured Kenya at the invitation of SportPesa.

However, the company's business has been severely affected by the government's directive to suspend its M-Pesa pay bills and SMS short codes.

SportPesa, owned by Pevans East African Limited, has filed a lawsuit against the government, seeking compensation for the losses incurred since the shutdown began.

The company claims that it had not broken any regulatory requirements and conducted its business according to the law.

Despite securing temporary court orders suspending the Betting Control and Licensing Board's decision to withdraw their license, SportPesa described the move as unlawful and in contravention of a court order.

The betting company also accuses the state of refusal to renew its licence and wants the court to stop a directive by the government to Safaricom, Airtel and Telkom to suspend its M-Pesa pay bills and SMS shortcodes.

So far, the government has renewed the license for seven betting firms, including BetLion, Odibets, Betpalace, Mcheza, Kwikbet, Betika and Gamemania.

Already, SportPesa and Betin Kenya are the recipients of Sh14 billion tax demand from the Kenya Revenue Authority.

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