Betting giants Pevans East Africa Limited locally trading as SportPesa and Gamcode Limited trading as Betin are in trouble over tax arrears. 

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Kenya Revenue Authority (KRA) has issued an ultimatum demanding Safaricom to pay Sh8.59 billion for the two companies. 

The withholding tax row is likely to lead to termination of business licenses of the gaming giants as Interior Secretary Fred Matiangi had warned earlier.

Safaricom CEO Bob Collymore has received a letter from KRA manager for debt enforcement, Asha Salim, demanding immediate payment to a Central Bank of Kenya account. The telecommunications provider has been directed to pay Sh3.29 billion for SportPesa and Sh5.29 for Betin.

"I hereby declare you to be an agent of the above taxpayer (SportPesa) and require you to pay the sum of Sh3,296,532,012 being tax due by the said taxpayer," Ms Salim directed concerning SportPesa taxes as reported by Business Daily.

Kenya Revenue Authority concludes by warning Safaricom about the potential transfer of liability if the notice period expires without payment.

"Subsection 13 of section 42 provides that, if without reasonable cause you fail to comply with this notice, you shall be personally liable for the amounts specified herein," Salim’s notice concludes.

However, SportPesa has challenged KRA’s computation and demands. This comes after they were penalised for another tax-related row.