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Kenya – New tax levels see SportsPesa cease sponsorship deals

By - 17 January 2018

A sports betting operator in Kenya has terminated several sports team sponsorship deals following changes in legislation that have seen taxation increase from 7.5 to 35 per cent.

SportsPesa, who had spent $5.8m on sponsoring football and rugby teams as well as pro boxing, had taken the government to the high court to appeal the increase but it lost the case.

SportPesa CEO Ronald Karauri said: “Unfortunately, we lost the case and we regret this decision. We have no choice but to cancel all sponsorships.”

As well as sponsoring Kenyan teams, SportPesa invested $12.5m as shirt sponsor for English Premier League team Everton FC. However it is the Kenyan teams that will be hit hardest.

AFC Leopards chairman Dan Mule said said: “Without the backing of SportPesa, the club will not be able to pay salaries.”

However, politicians were keen to point out that such taxes would fund critical programs.
MP Hillary Kosgey said: “They get money from Kenyans and it is only fair that the profits they make go into serving Kenyans in economic development. We will not allow them to blackmail the government.”

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