This archive report was first published on 3 October 2019.
SportPesa Shuts Down Operations in Kenya, Fires 400 Employees ¶
On October 2, 2019, SportPesa, a giant betting firm, informed its employees that their services were no longer tenable in Kenya.
The decision came days after the firm announced its closure of operations in Kenya, citing a non-hostile regulatory environment as a reason for its decision.
According to a video circulating online, the company's CEO, Ronald Karauri, broke the news to the employees with a sullen face.
One employee was heard saying that he had been forced to look for a cheaper house as his future remained uncertain.
SportPesa, which operates in Kenya as Pevans East Africa Limited, had run into trouble with the law alongside 27 others at the end of July 2019.
The firm had protested the recently proposed tax on customer stakes by the National Treasury in amendments contained in the 2019 Finance Act, which still awaits presidential accent.
"SportPesa is disappointed with the decision by the Kenyan legislature to impose a 20% excise tax on all betting stakes," the firm said.
While announcing the move to close business, SportPesa said it would resume operations when Kenya puts in place adequate taxation and a non-hostile regulatory environment.
The announcement came hours after the second-largest firm, Betin, announced that it was declaring its staff redundant.
Betin, which operates as Gamcode Limited, told staff on Friday that the firm had been left with no option but to let them go.
