This archive report was first published on 6 September 2019.
Published on September 6, 2019, SportPesa CEO Ronald Karauri appeared before the Senate Justice and Legal Affairs Committee over the halting of betting and gaming licences at County Hall, Nairobi.
After tough negotiations, the Kenya Revenue Authority (KRA) and SportPesa have reached a deal on the back taxes, with the firm agreeing to pay a significantly lower sum in phases.
According to sources, the deal indicates that KRA was unrelenting in the negotiations, which culminated in the clearance that paved the way for SportPesa's return to operations.
With the clearance from the taxman, SportPesa will now have to reapply for an operating licence from the Betting Control and Licensing Board (BCLB).
Only the top management of both institutions were involved in the closely-guarded talks, which excluded officials who would ordinarily be involved in such arbitration.
SportPesa also committed to abide by the taxation schedule, which requires gamers to part with 20 per cent of their winnings in withholding tax.
For the taxman, agreeing to the settlement plan is still a win, rather than act tough and close the company while losing out on the entire amount.
“They have committed to settle the amounts but asked KRA to spread payments over several years,” said an official privy to the details of the agreement.
