SportPesa betting site has totally stopped the local sports sponsorship it has been undertaking in Kenya.
This decision comes after the Kenyan 12th Parliament passed a legislation imposing a 35% tax to the gambling firms operating in Kenyan territory.After the bill was passed in the Parliament, SportPesa challenged the move in the High Court but lost the case.
During the final ruling,High Court judge Justice John Mativo dismissed claims of infringement by the gambling sites and that their rights were denied.The move is seen to have demoralized the firm leadership and top management.This is among the major betting sites in the whole world and in Kenya it has sponsored sporting activities and numerous football clubs.
National Treasury C.S Henry Rotich had earlier proposed the imposition of tax rate of 50% to gambling sites,betting, lottery and gamings during the annual reading of 2017/2018 budget but the National Assembly lowered the tax rate further to 35%.
The Kenya Rugby Union, KRU which has been a major beneficial has been negatively affected by the move.They are now forced to seek an immediate alternative to continue with its normal daily requirements.
The gambling sites in Kenya have been claiming about dissatisfaction working in Kenya under that tax rate.