It has now emerged that wealthy and influential investors behind SportPesa are the biggest losers following the decision of the firm of shutting down its operations in Kenya.
Sportpesa, which was estimated to generate close to Sh100 billion in annual sales, announced the sacking of all its employees after it failed to secure a license to resume its operations after months of a hiatus.
The owners of the firm included its CEO Ronald Karauri, businessman Paul Wanderi Ndung’u and Asenath Wachera Maina. Others are businesspersons Guerassim Nikolov (Bulgaria), Valentina Nikolaeva Mineva (Bulgaria) and Ivan Kalpakchiev (Bulgaria) and American businessman Gene Grand.
The standoff with the Kenya Revenue Authority (KRA), set stage for the firm’s exit from the market.
The company had questioned the stand of the government on taxation before it announced its departure from the market. The betting firm poked holes in the government’s decision to impose a 10 per cent Excise Duty on stakes and betting tax of 15 per cent.
The firm has also dismissed claims that it makes abnormal profits. The shareholders argued that the profit is overrated.
“The government should not tax Excise Duty on the entire value of the transaction,” said in a statement released to media houses.
If excise duty is charged on the revenue of the betting company or as winnings for a player, this would amount to double taxation the investors' view.