Sportpesa moves to court over betting tax law

NAIROBI, KENYA: Sportpesa has moved to court to challenge the 35 percent tax on revenue which was signed I to law by President Uhuru Kenyatta effective January next year.

While recommending the betting tax last month, Uhuru said the law is to discourage Kenyans, and especially the youth, in directing their focus on betting, lottery and gaming activities instead of productive economic engagement, a vice that is likely to degenerate into a social disaster.

Betting firm SportPesa, the biggest investors in sports sponsorship, on June 23 sent out a notice of termination to all its beneficiaries to be ready for huge cuts.

The company said they cannot absorb the 35 per cent betting tax imposed by the government and still continue honouring the obligations of their sponsorships.

Kenya Rugby Union , Football Kenya Federation (FKF) and Kenyan Premier League will be the biggest losers as among them they are supposed to receive Sh1.5 billion from the company in the next five years.