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SportPesa threaten to shut down operations in Kenya

Giant gaming firm SportPesa say they will shut down operations in Kenya, if a looming stand-off with government on taxation rates isn’t resolved.

Without issuing timelines on the threat, SportPesa Global CEO Gerasim Nikolov on Friday explained that the firm can no longer operate profitably under the current taxation regime.

Speaking on the day after the firm awarded Sh10 million to eight Jackpot winners, Nikolov also regretted the companies decision to agree several sponsorship deals with sports entities, claiming this could be the reason as to why the firm ended up under the financial radar of the government.

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SportPesa withdraws Sh1b sponsorship to Kenyan sports

“There us nowhere in the world where such a huge tax is levied on turnovers and even here in Kenya, no firm can survive if a 35 percent tax was put on its turnover,” Nikolov said.

SHIFT OPERATIONS

“Unfortunately, the ultimate effect of us shifting operations from here will be wide considering the various business that depend on its history.”

Nairobi News understands that the firm is considering shifting base to Tanzania or the United Kingdom in a move that could lead to loss job for its Kenyan workforce.

Already SportPesa, has given notice to pull the plug on several sponsorship deals worth an estimated Sh1 billion as from January, 1 2018.

All this is in related to the Finance Bill 2017, which was signed by President Uhuru Kenyatta earlier this year. The law imposes a 35 percent on all gambling revenue on betting, gaming, lotteries and prize competitions. This translates to a 27 percent increase.