Many to lose jobs as SportPesa and Betin, Kenya’s leading betting firms halt operations in Kenya.
The two firms have halted their operations in Kenya after a prolonged standoff with the government of Kenya with regard to taxation.
The two betting firms control approximately 60% of the Kenyan market share. These firms said separately that they had opted to take this action after heavy taxes which they say made the enterprise no longer viable.
SportPesa, which had indicated earlier that it was resuming business, now says that it can’t hide its disappointment with the decision made by the Kenyan legislature that imposes a 20% excise tax on all the betting stakes.
It makes the argument that this decision will have severe consequences for the licensed betting companies. It also argues that the firm has been dutifully paying its taxes and cautions the government of a possible decline in the tax revenue of the government. It also threatens to call it quits on all sports investments in Kenya.
Betin has issued a notice of termination to all its staff stating that their positions will be rendered redundant from 31st October 2019.
The number of people that risk losing their jobs with this shutdown is approximately 2,500.
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