The betting firms, Sportspesa and Betin have finally closed their business operations in Kenya following a standoff based on tax between the state and the two companies.
The two companies spoke to the media on separate occasions and stated that as a result of high taxes imposed on getting firms in Kenya, it is no longer feasible to do business in Kenya.
Kenyan law requires that all betting companies pay 20% of all betting stakes as excise duty tax.
They laid their blame squarely on National Treasury then led by Henry Rotich for misunderstanding how revenue generation works in the betting industry.
The industry is further complicated by the additional 20% withholding tax on all winnings.
Based on the above two taxes, SpotsPesa argued that the customer’s winnings will be greatly affected.
SportsPesa and Betin controlled at least 60% of the betting market share. The fact that the two firms have terminated their business means that government will collect less in taxes, sporting firms will stop funding sports activities, atleast Betin has terminated it’s employees and this is expected to affect at least 2,500 employees in the nearby future.
