Kenyan Premier League Limited Chairman, Ambrose Rachier, has weighed on the debate about the proposal by the Government to introduce a uniform 50% tax across board on betting, lottery and gaming competitions.
According to Rachier, the colossal tax increment would inadvertently wipe out significant investments in the country’s sporting federations courtesy of various betting and gaming firms.
“As things stand today, our sponsors SportPesa already pay 30% on their net profit plus the usual statutory taxes levied by the government. If you over tax an enterprise, you not only erode their profit margin, but you are likely to scare them away or force them to close shop,” said Rachier.
In a joint press conference called by Gor Mahia and AFC Leopards, Rachier said: “Gor and Leopards require substantial funding on a daily basis and even with the current sponsorship, we are still struggling.
“If, say, SportPesa were to withdraw or downscale their sponsorship, our clubs will die because it is from their profits that the said firms get the money to directly support clubs and federations.” [Zach Macharia]