Opposition leader Raila Odinga has expressed his fears following the exit of betting giant SportPesa from the Kenyan market. Speaking on Sunday during a live interview on NTV, Mr Odinga made public his fears of some clubs collapsing due to bankruptcy.
"Sportpesa was helping some of the sports clubs with sponsorship, it is not happening anymore and some of these clubs might just have to fold up," Raila Odinga said.
Some of the mist affected teams were the historical giants AFC Leopards and Gor Mahia. The two lost shirt sponsorship deals after SportPesa closed Kenyan operations.
“Until such time that adequate taxation and non-hostile regulatory environment is returned, the SportPesa brand will halt operations in Kenya,” said the firm in a statement quoted by Standard.
The firm was not happy with a change in the tax laws affecting the gaming sector. They alleged that treasury erred while formulating the new regulations.
"SportPesa is disappointed with the decision by the Kenyan legislature to impose a 20 per cent excise tax on all betting stakes. The tax is based on a fundamental misunderstanding by the (Henry) Rotich (former CS) led Treasury of how revenue generation works in the bookmaker industry," the SportPesa added.