This archive report was first published on 28 September 2019.
Published on September 28, 2019, SportPesa, the largest betting firm in Kenya, has suspended its operations in the country, leaving an unknown number of staff without income.
The decision comes after months of negotiations with the government over taxation issues. In a statement, SportPesa expressed its willingness to resume operations when Kenya establishes an 'adequate taxation and non-hostile regulatory environment.'
According to SportPesa, the current 20 percent withholding tax on winnings has removed the economic incentive for customers to place bets, ultimately depriving them of their total winnings.
On the same day, Betin, the second-largest betting firm in Kenya, announced that it would be declaring all its staff redundant, effective October 31. The decision was made due to the firm's inability to operate since July 2019, despite several meetings with government entities regarding license renewal.
The two firms were among 27 betting companies whose licenses were revoked by the government over a taxation dispute. SportPesa, however, continues to operate in Tanzania.
