This archive report was first published on 31 October 2019.
On October 31, 2019, Sportpesa, a leading betting company, shocked its 400 employees in Kenya by announcing plans to terminate their employment. However, in a surprising turn of events, the company has now recalled the termination letters.
According to Pulse Live Kenya, Sportpesa's management had written to its former staff, informing them that the company had withdrawn the termination letters for the Kenyan subsidiary. The employees were called for a meeting on Friday morning to discuss the way forward.
The company's decision to shut down operations in Kenya was met with public criticism from citizens and political leaders, who were disappointed by the firing of over 400 staff members at a time when employers were retrenching in droves.
"Sportpesa is disappointed with the decision by the Kenyan legislature to impose a 20% excise tax on all betting stakes," said Sportpesa CEO Ronald Karauri in September. "The tax is based on a fundamental misunderstanding by the Rotich-led treasury of how revenue generation works in the bookmaker industry."
It remains unclear whether the company's decision to reconsider its operations in Kenya is a permanent change or a temporary reprieve.
