This archive report was first published on 3 October 2019.
On October 3, 2019, Sportpesa made the shocking decision to halt all operations in Kenya, leaving hundreds of employees jobless. The company was among 27 firms that had their licenses revoked over alleged tax fraud.
According to a statement released by Sportpesa, the decision to halt operations was a direct result of the government's refusal to accept a deal that would have seen the company's licenses restored. The government had offered Sportpesa a deal, but the company declined.
‘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,’ Sportpesa stated.
With the government already imposing a 20% withholding tax on winnings, Sportpesa argued that the economic incentive to place bets would be completely removed. The company's CEO, Ronald Karuri, announced that Sportpesa would not resume its services until the government scraps the 20% excise tax imposed on all stakes.
