Sport Pesa and Betin have officially left the Kenyan market due ti the imposition of 20 percent tax on all betting stakes which according to the company, this will severely affect their customers.
“This will have severe consequences for licensed betting companies. Which dutifully pay their taxes and ultimately will lead to a decline in government tax revenue to near zero and will halt all investments in sports in Kenya,” reads part of the statement.
“As such, Sportpesa has decided it is most prudent to shutdown our Kenya operations along with our beloved site and stop access to services,” an internal memo to staff from the firm’s CEO Ronald Karauri said.
Betin, which is also one of the biggest betting firm in the country, announced that it had declared all its staff redundant.
In an internal memo to the employees, it stated that they had no option other than to let go of them
“We hereby notify you that positions will be rendered redundant on 31 October 2019. This notice is given in accordance with section 40 of the Employment Act 2007 and as such the provided for will apply to all staff affected,” .
“We have had financial constraints as you might expect. As a result of the deterioration of the profitability, the management has had to rethink its operational model and to proceed with the exercise of termination on account of redundancy,”.
Sport pesa on the other hand said it has to halt all operations until they get a favorable working environment .“Until such a time that adequate taxation and non-hostile regulatory environment is returned, the Sportpesa b will halt operations in Kenya.”
Due to this move many people will be unemployed as betting has alot of people who depend on it either directly or indirectly.