Betting company Sportpesa cancels all local sponsorship over implementation of the 35 percent taxation by the government

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BY SAMSON MBII,NAIROBI,2ND JAN 2018-Betting company sportpesa has canceled all local sponsorship with immediate effect.The decision follows the move by government to commence implementation of the 35 percent taxation.

According to  SportPesa CEO Ronald Karauri  who made the announcement on Tuesday in Nairobi,they had to relinquish the sponsorship so as to stay afloat and continue operating in Kenya.

Karauri said that the pullout is immediately effective and that they have written to all sports teams and federation that they support, noting that they will save Sh600m annually from that.

The development will immediately affect football giants Gor Mahia and AFC Leopards who are set to represent the country at the CAF Champions League and Confederations Cup respectively.

The clubs had threatened that they will pull out of the competition due to financial constraints.

The move will also affect other sports among them Kenya Rugby Union with the Kenya Sevens the biggest losers as well as the Kenya Simbas.

Betting companies had earlier moved to court with the aim of stopping the betting tax increase from 15 to 35 percent, but Judge John Mativo ruled against their favour late December.

 

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