Nick Mwendwa has termed SporPesa contract cancellation as a big blow. [Photo/Citizentv.co.ke]
Football Kenya Federation (FKF) president Nick Mwendwa has termed leading online betting firm SportPesa’s cancellation of FKF contract as a big blow to football development in the country.
The move was occasioned by the Finance Bill 2017 which took effect on January 01, 2018. The new law raised the tax rate on betting, lotteries and gaming activities to 35 percent, a decision SportPesa unsuccessfully challenged in court.
“It’s a big blow to football development and sports in general, owing to the fact that SportPesa also sponsors other fields. Unfortunately, it is the position we find ourselves in, we, however, remain optimistic that a solution to the same will be reached in good time,” Mwendwa is quoted by footballkenya.org.
“We support the government’s proposal to introduce a uniform tax across board on betting, lottery, gaming, and competition industry but also feel that it is important to acknowledge the growth of sports marketing as an industry and acknowledge that worldwide the private sector plays a big role in developing sports outside what is considered national assets such as the national, youth and women’s teams,” he added.
SportPesa canceled its sponsorship with Football Kenya Federation effective December 31, 2017.
“We refer to our letter of June 2017. Our attempt to have the imposition of 35 percent tax reversed by the government has been unsuccessful,” said a section of a letter sent to FKF president Nick Mwendwa by SportPesa CEO Ronald Karauri.