This archive report was first published on 3 October 2019.
On October 3, 2019, SportPesa's CEO Ronald Karauri informed staff that their employment contracts would be terminated, effective November 3, 2019, citing a tax standoff with the government.
According to the termination notice, staff were required to hand over company property, including equipment and documentation, for clearance. The notice read: 'You be required to successfully hand over all company property including but not limited to equipment, electronic, documentation and any other instrument given to you or developed or traded on behalf of the company for clearance from the organisation.'
With the government's crackdown on the betting industry, economist Duncan Otieno warned that the government's hardline stance would ultimately be the loser in the long run. He noted that the sector had remitted Sh160 billion in taxes to the state by 2016 and created jobs.
Speaking to Standard Digital, Otieno said: 'It will be simplistic from the side of the government to wish away a sector that injects Sh160 billion into the economy and creates jobs.'
He added that it would be cheaper for the government to deal with a betting population than a jobless population, citing the social ills associated with a jobless population.
As a result of the government's actions, cyber café operators have also been affected, with some owners stating that they are struggling to pay rents and may soon close shop.
