This archive report was first published on 28 September 2019.
September 28, 2019 - Sportpesa, a prominent sports betting firm, has shut down its operations in Kenya, citing the country's high taxation and hostile regulatory environment.
The move comes just days after the company assured Kenyans of its return to full operations following a long taxation battle with the government.
According to Sportpesa, the 20% excise on all betting stakes imposed by the government has made it difficult for the company to operate profitably.
Other betting firms, including Betin, have also exited the Kenyan market, with Betin declaring its staff redundant.
The Kenyan government suspended the licenses of all betting agencies in July, requiring them to submit proof of tax compliance.
Despite this, Sportpesa criticizes the government for over-regulation, claiming that it threatens to deny the government tax revenue and has severe consequences for betting companies that dutifully pay their taxes.
However, the Betting and Licensing Control Board has cleared several betting firms, including Betway, Odibets, and Mozzartbet, for licensing by the Kenya Revenue Authority (KRA).
Sportpesa has promised to return to Kenya when the country's taxation and regulatory environment become more favorable.
