This archive report was first published on 9 August 2019.
Kenyan sports has been dealt a significant blow after gaming giant SportPesa confirmed they have cancelled all sports sponsorship in the country with immediate effect, as of August 9, 2019.
SportPesa, a direct sponsor of the Kenyan Premier League (KPL) and two clubs that participate in the top-tier – AFC Leopards and Gor Mahia, had been pumping Sh96 million, Sh55 million, and Sh65 million directly into the three entities, as well as supporting boxing and other sports.
The company, alongside other gaming firms, had issues with the government after Interior Cabinet Secretary Fred Matiangi cancelled their operating licenses over tax issues and subsequently their M-Pesa Paybill numbers were blocked.
According to a statement from SportPesa, the company has been subjected to punitive measures by regulators, including delayed licence renewal and the suspension of paybill numbers, which have considerably reduced their business operations.
“SportPesa as a business has been subjected to punitive measures by regulators such as delayed licence renewal and the suspension of paybill numbers with these actions considerably reducing the level of business operations. This despite the existence of a court order prohibiting the regulator from taking such actions,” read the statement in part.
As a result, SportPesa has decided to cancel all sports sponsorships in the country, effective immediately. KPL CEO Jack Oguda has expressed concerns that the cancellation of the sponsorships will have a huge effect on Kenyan football in general.
“We have made huge strides as a league since SportPesa came in as title sponsors but all this is about to go down the drain. Clubs, players, the league itself, employees, administrators, and their dependents will really struggle. The league which was scheduled to kick off later this month might not kick off and this will affect the National team as well. It is a sad state of affairs,” Oguda told Nation Sport.
