This archive report was first published on 3 October 2019.
October 3, 2019, marked a somber day for SportPesa employees as the company announced the termination of its operations in Kenya. This move comes after a long-drawn taxation battle with the government.
According to reports, SportPesa Chief Executive Officer Ronald Karauri informed staff members of the decision in a meeting held on Wednesday. The company, which operates in Kenya as Pevans East Africa Limited, had been at odds with the government over tax issues.
The dispute centered around the remittance of withheld customer winnings, with the company joining rival Betin in protesting the claim in court. However, the suit was quashed at the end of August, leaving SportPesa with no choice but to shut down its operations.
Additionally, SportPesa had been protesting the proposed tax on customer stakes by the National Treasury in amendments contained in the 2019 Finance Act. Despite holding out for the renewal of its license by the Betting Control and Licensing Board (BCLB), the company failed to garner backing from the BCLB in its license renewal application.
As a result, SportPesa has sent home all its 400 employees, joining rival Betin, which ceased operations at the end of September and sent home its staff.
