SportPesa drops Kenyan sports sponsorship after tax rise

| By contenteditor
Online gaming company SportPesa is to halt all its sports sponsorship in Kenya in response to an increased tax rate on gambling companies.

Online gaming company SportPesa is to halt all its sports sponsorship in Kenya in response to an increased tax rate on gambling companies.

Last week, Kenyan President Uhuru Kenyatta signed a new law that will impose a tax of 35% of gross profit on all gambling activities in the country.

Bookmakers in the country were paying a 7.5% rate, while lotteries were taxed at 5%, casino gambling at 12% and competitions such as raffles at 15%.

According to the BBC, Ronald Karauri, chief executive of SportPesa, said that the move will negatively impact the company’s operations.

Karauri added that SportPesa has not take the decision lightly as it had been “uplifting football in the country”.

SportPesa had been sponsoring the Kenyan Premier League, as well as a number of clubs in the country’s top-tier.

However, SportPesa confirmed that its sponsorship of teams and competitions outside of Kenya will not be affected by the move.

SportPesa currently sponsors English Premier League football club Everton as well as Hull City, which was relegated to the second-tier Championship at the end of last season.

Related article: Kenyan president signs off on 35% gambling tax law

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