High Court Upholds 35% Tax on Betting, Gaming and Lotteries
High Court decision to uphold the decision that will see betting, gaming and lottery companies pay 35% tax which took effect on 1st January, led to SportPesa cancelling a tune of KSH 600m on sponsorship.
The cancellation of the sponsorship will affect Football Kenya Federation, Kenya Premier League, Kenya Rugby Union, Gor Mahia, AFC Leopards, Nakuru All Stars, Supper 8 grassroots tournaments and many others including the media when it comes to advertisements.
SportPesa CEO Ronald Karauri indicated during a press briefing on Tuesday that the tax was too heavy for them to continue with their normal activities.
The Boxing Federation of Kenya (BAK), Gor Mahia and AFC Leopards have so far threatened to boycott the continental competitions if the government fails to revoke its decision.
President Uhuru Kenyatta signed into law the new gambling tax in June 2017, Treasury Cabinet Secreatary had earlier suggested a 50% tax which was rejected by parliamentarians.
In the recent past the company has been key in supporting local football teams. With the cancellation Kenyans have raised mixed reaction also raising the all-important question as to how much SportPesa earns.