Kenyan firm takes tax hike to court

SportPesa has decided to move to court the tax imposed to gambling firms’ revenues, signed by President Kenyatta.

Kenya.- After showing its opposition to the law signed by President Uhuru Kenyatta, which authorises the significant rise of gambling taxes from 5 to 35 percent, and urging the government to review the new regulations, SportPesa has announced that it will take the challenge to court.

The biggest betting firm in Kenya had already revealed the cancellation of its sponsorship of sports bodies in the country, and it was also rumored that the company would cease its operation altogether, but Chief Executive Officer, Ronald Karauri, said that the company “will be the last gaming brand to ever close in Kenya for whatever reason.” Local operators believe that no business can survive heavy taxation on revenue and not profit. Earlier this month it was revealed that Karauri sent submissions to the Parliamentary departamental committee on labour and social welfare in order to call for retention of the current tax regime.

As Standard Media reported, the Kenyan Premier League, Football Kenya Federation (FKF) and Kenya Rugby Union will be the entities that will suffer the biggest losses, as they were supposed to receive US$14 million from SportPesa in the next five years.