This archive report was first published on 30 September 2019.
Published on September 30, 2019, Nairobi — The Kenyan government's crackdown on the betting industry has claimed its first casualties, with Sportpesa and Betin, two of the country's largest betting firms, halting their operations.
Sportpesa, which had earlier indicated a return to business, has decided to quit the Kenyan market due to the imposition of a 20 percent excise tax on all betting stakes. The firm argues that this tax, combined with a 20 percent withholding tax on winnings, will deprive consumers of their total winnings and have severe consequences for licensed betting companies.
"This will have severe consequences for licensed betting companies. Which dutifully pay their taxes and ultimately will lead to a decline in government tax revenue to near zero and will halt all investments in sports in Kenya," reads part of Sportpesa's statement.
Meanwhile, Betin, the second-largest betting firm, has declared all its staff redundant, citing financial constraints and a lack of success in engagements with government agencies regarding the renewal of its license.
"We hereby notify you that positions will be rendered redundant on 31 October 2019. This notice is given in accordance with section 40 of the Employment Act 2007 and as such the provided for will apply to all staff affected," the firm said in an internal memo.
