This archive report was first published on 30 September 2019.
Kenya's betting industry has been dealt a significant blow with the shutdown of SportPesa and Betin, two of the country's largest operators.
According to reports, the two firms have stopped operations in Kenya and are set to send home thousands of their employees after a prolonged tax standoff with the Kenyan government.
Published on September 30, 2019, the tax standoff between the government and the betting firms has been ongoing for months, with the government imposing a 20 percent excise tax on all betting stakes.
SportPesa, which had earlier indicated that it was coming back to business, now says it is disappointed with the decision by the Kenyan legislature to impose the tax.
“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,” the firm said in a statement.
On its part, Betin has sent a notice of termination to all its staff, citing financial constraints due to the prolonged tax standoff.
“Management has had several extensive meetings with relevant government entities regarding the company’s licence renewal without much success,” the firm explains in the staff memo.
With the shutdown of the two, more than 2,500 people who depend directly on the industry will be out of jobs in coming days as the government crackdown on the sector draws its first casualties.
