This archive report was first published on 6 September 2019.
Kenya Revenue Authority (KRA) announced that SportPesa had been cleared of its tax disputes, paving the way for the firm's return to operations.
According to sources, the deal was reached after tough and long negotiations between KRA and SportPesa, resulting in a significantly lower sum being agreed upon.
The agreed amount will be paid in phases, allowing the firm to resume its 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).
Other gaming firms, such as Betin, have not been as lucky in their wish to return to operations.
“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.
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.
“The Kenya Revenue Authority is bound by law not to reveal tax affairs of an individual or a company,” KRA said in a statement, citing client confidentiality.
However, KRA confirmed that tax clearance is a requirement to be tax compliant in order to get regulatory approvals or conduct business with Government.
