This archive report was first published on 7 January 2020.
Kenya's gambling sector has been under scrutiny since July 2019, when 27 betting companies, including Sportpesa, had their licenses suspended due to non-compliance with tax returns and failure to renew licenses in good time.
Among the affected companies, Sportpesa was particularly hard hit, halting operations and pulling out of all sponsorship and advertising deals. The company subsequently sued the Kenyan government, seeking compensation for the period it was out of business.
As the standoff between Sportpesa and the government continues, other betting companies in Kenya are vying for the sports betting market left vacant by Sportpesa's closure.
On September 3, 2019, Sportpesa released a statement reassuring its customers that it would be back in operation soon, but the company's optimism has yet to materialize.
With Sportpesa's suspension, local footballers and fans are worried, as the company was the sole sponsor of Kenya's top-flight football league, the Sportpesa Premier League, at an estimated cost of Ksh.150 million annually.
These funds supported administrative costs, referees, match commissioners, coaches, teams, staff, and players under 36. However, Sportpesa's return to Kenya remains uncertain, with the company urging fans to wait patiently for the outcome of ongoing discussions with the government and regulators.
Despite laying off over 400 staff members when it exited the Kenyan market, Sportpesa has recalled the termination letters of affected employees, citing plans to issue proper redundancy notices. However, the company's return to the Kenyan online betting market is contingent upon the Kenya Revenue Authority revising its high taxation on betting sites and restoring a favorable working environment for sporting businesses.
