Sports Principal Secretary Kirimi Kaberia at a past event. [Photo|Ministry of Sports]
The government has raised concern over threats by major betting companies to terminate their sponsorship agreements with clubs and federations in the country.
Sports Principal Secretary Kirimi Kaberia said it was regrettable that the sponsors wanted to withdrawal due to the new tax regime, saying the Sports Ministry would engage the players to understand their issues.
"It is certainly not good news for local sports that some sponsors want to pull out. At this point, we need everybody to continue supporting our federations and clubs," he said speaking in Nairobi on Friday.
"In this regard, the ministry will engage all those affected by the new tax regime to see how best to sort out the issue," Kaberia added.
Pevans East Africa Limited, the company that owns online betting firm SportPesa, has reiterated its threat to cancel all existing financial sponsorships agreements made in the country.
The giant firm has repeatedly stated that the 35 percent tax, which was passed by Parliament, would bring the betting companies to their knees.
SportPesa Chief Executive Officer Ronald Karauri said if such a tax cap was implemented, there will be no money to be made and therefore no reason for them to continue normal operations.
On Thursday, High Court dismissed a case filed by betting companies challenging new regulations to control gambling which were passed by Parliament.
In his ruling, Justice John Mativo said the legislation was legally enacted and it overrides the legitimate expectations of the betting firms.
"I find and hold that the new taxes do not infringe on the petitioners' rights to property since they are aimed at serving legitimate public interests," he ruled.
Karauri faulted the judgement, saying SportPesa will issue an official statement next week.
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