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SportPesa Fires All 400 Employees Amid Taxation Battle

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 3 October 2019.

On October 2, 2019, SportPesa Chief Executive Officer Ronald Karauri informed employees in a meeting that the company would be terminating their services.

The decision comes after the firm's long-drawn taxation battle with the government, which culminated in the termination of its operations in Kenya.

At the end of July, the Ministry of Interior had moved to purge the gambling firms, including SportPesa, over outstanding tax arrears related to the remittance of withheld customer winnings.

Despite joining rival Betin in protesting the claim in court, the suit was quashed at the end of August.

Additionally, SportPesa had been protesting the proposed tax on customer stakes by the National Treasury in amendments contained in the 2019 Finance Act.

However, the optimism of renewing its license by the Betting Control and Licensing Board (BCLB) following a nod from the Kenya Revenue Authority (KRA) on September 3, seemed to have fizzled out.

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