This archive report was first published on 29 September 2019.
Published on September 29, 2019, two major betting firms in Kenya, Betin and SportPesa, have announced their decision to halt operations in the country due to a hostile operating environment and punitive taxation.
Betin, in a memo to its employees, cited redundancy as the reason for its decision, stating that the company had not been operational since July 2019. The firm's managing director noted that management had held several meetings with government entities regarding licence renewal without success.
SportPesa, on the other hand, cited hostility from lawmakers and the National Treasury as one of the reasons for its decision to halt operations. The firm noted that the imposition of a 20 per cent excise duty on the entire amount staked had made its operations in Kenya unviable.
The move to shut operations will affect thousands of direct and indirect jobs, with industry players warning that the increased taxation will drive Kenyans who bet to underground operators, many of them registered in other jurisdictions.
Industry players also noted that the excise duty on the staked amount would expose the industry as well as gamblers to several instances of double taxation, including the gross gaming revenue that is already subject to 15 per cent excise duty.
