SportPesa will reconsider the Kenyan market: SportPesa CEO Ronald Karauri said the operator will reconsider operations in Kenya following the cancellation of a 20% earnings tax.
The company recently halted operations in the country after the government imposed a 20% excise tax on all bets.
SportPesa will reconsider the Kenyan: Karauri explanations
Karauri explained how the tax made market is still unviable.
“A 20% tax is expected on the stake. The fact that we already have a tax on earnings means that the business model collapses completely.”
At a recent hearing, the Kenya Court of Tax Appeals overturned the tax, ruling that “the total winnings” as stipulated in the tax do not include the amounts originally staked by the gambler.
In a statement, Karauri said: “Today’s decision is a significant development for both SportPesa and the general betting industry in Kenya, reversing the previous government policy that had made the business sector commercially and economically unviable.
“SportPesa will now rethink the future of its operations in Kenya. We remain committed to working closely with all stakeholders in Kenya as we seek to renew our license and resume our operations in the near future.”