SPORTPESA RETURNS

Last year two betting giants closed shop in Kenya – Sportpesa and Betin. This was in response to the government imposed 20% on betting stakes in the country. The new taxes were an additional to other taxes; individual tax winnings and the annual taxes levied on the companies.

The decision by the government to heavily tax the betting companies led to Sportpesa closing shop in Kenya. In their statement they said they will no longer operate in Kenya until a non-hostile regulatory environment is returned. The company had grown to a multibillion dollar industry operating in several countries notably UK. The company sponsored numerous sporting activities in the country as well as being the main sponsors of premier league club Everton. They also had deals with Arsenal football club and Racing Point a Formula 1 team. When Sportpesa closed shop, 2500 Kenyans were estimated to have lost their job.

On 1st July 2020, President Uhuru Kenyatta signed into law the country’s Finance Bill which saw the 20% tax scraped. This being one of SportPesa’s irreducible minimum, many people heralded the move as paving way for the sporting giant to resume operations in the country. One of the reasons cited for scraping the tax was that many Kenyans were now opting to place their bets on foreign owned companies hence denying the country a much needed revenue.

As Gamblers rushed to celebrate this ‘win’ the Interior Minister Dr. Fred Matiang’i was quick to rain on their party. In a video seen by Challyh News, the powerful minister said they were working closely with the president to continue regulating the industry. Even if Sportpesa will resume operations, they should not expect a free reign they enjoyed over the last five years.

The Government of President Uhuru Kenyatta will not relent on the decisions made with regards to betting and gambling. These decisions were made to safeguard the moral fabric of our country and to protect our youth from the vices of gambling. pic.twitter.com/taZLqzsWZ0

— Dr. Fred Matiang'i (@FredMatiangi) July 3, 2020

In her social media accounts, Carol Radul a sports presenter and Arsenal fan reported that FKF President Nick Mwendwa had got a 5 year sponsorship deal worth 1.2 billion for the Kenyan Premier League from an undisclosed betting firm. Most Kenyans are speculating the sponsorship is from Sportpesa who are looking to make a grand entry to the Kenyan betting scene.