This archive report was first published on 28 September 2019.
SportPesa and Betin Halt Operations in Kenya ¶
Published on September 28, 2019
Kenyan betting giants SportPesa and Betin have shut down their operations in the country following a long-standing tax dispute with the government.
The two companies, which control over 60% of the market share in Kenya, have been at loggerheads with the government over high taxes imposed on the industry.
According to reports, SportPesa had promised to reopen its doors after its pay bill numbers were withdrawn by the Betting Control and Licensing Board over noncompliance.
However, the company expressed disappointment in the government's decision to impose a 20% excise tax on all betting stakes, arguing that it would deprive consumers of their total winnings.
"The tax is based on a fundamental misunderstanding by the Rotich-led treasury of how revenue generation works in the bookmaker industry. This decision will have a damaging impact on both customers and treasury," SportPesa said in a statement.
On the other hand, Betin sent a notice of termination to all its staff, citing that the company had not been in business since July 2019 and that there had been no success in negotiations with the government.
The company held that it had become financially impossible to maintain the entire workforce, and that positions would be rendered redundant on October 31, 2019.
The fate of over 2,500 Betin employees now hangs in the balance.
