This archive report was first published on 6 September 2019.
On September 6, 2019, SportPesa, the beleaguered betting giant, secured a deal on the contested back taxes, paving the way for its return to operations after a two-month absence.
The agreed amount, significantly lower than the original amount, will be paid in phases, allowing the firm to resume its operations. According to sources, the Kenya Revenue Authority (KRA) was unrelenting in the tough and long negotiations that culminated in the clearance.
With the clearance from the taxman, SportPesa will now have to reapply for an operating licence from the Betting Control and Licensing Board (BCLB). The firm has committed to abide by the taxation schedule, which requires gamers to part with 20 per cent of their winnings in withholding tax.
However, Betin, the other significant gaming firm majority owned by Mauritius trust companies, has not been as lucky in its wish to return to operations. An official privy to the details of the agreement confirmed that the amount owed would be settled in full, indicating the huge concessions made by SportPesa owners.
The Kenya Revenue Authority confirmed the agreement but formally refused to provide the details, citing client confidentiality. KRA stated that tax clearance is a requirement to be tax compliant in order to get regulatory approvals or conduct business with government.
According to Peter Mbugi, BCLB director-general, receipt of the tax clearance is among the requirements for processing the licence. Other requirements are a clean criminal record of the owners plus a security deposit.
