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SportPesa withdraws Sh1b sponsorship to Kenyan sports

The sporting fraternity in Kenya faces an uncertain future in the wake of a notice by top gaming firm SportPesa to pull out of all sponsorship arrangements by January 1 next year.

This development was confirmed Friday by SportPesa CEO Ronald Karauri, via his official Twitter account.

If the notice is implemented, the firm will withdraw an estimated Sh1 billion in sponsorship to local sports entities including the Kenya Rugby Union, Football Kenya Federation, the Kenya Premier League Limited, Gor Mahia, AFC Leopards, Nakuru All Stars and the Kenya Boxing Federation, among others.

Karauri’s move comes after Parliament passed a law that capped tax for gaming companies at 35 per cent.

It is, however, not immediately clear if SportPesa’s arrangements with foreign sports entities will be affected by this notice as Karauri did not clarify.

SportPesa also sponsors top English sides Everton FC and Hull City whilst the firm also boasts several technical partnerships with the likes of Arsenal and Southampton.

Only recently, the firm added top Tanzanian clubs Simba, Yanga and Singida to their stable.