President Nick Mwendwa. He has acknowledged that the impending exit of Sportpesa from local football will harm the federation. [Photo/Citizen]
Football Kenya Federation President Nick Mwendwa has admitted that the impending withdrawal of Sportpesa from sponsoring the local league will hurt.
The betting firm has made good their threat of withdrawing from the league after they failed to agree with the government over the tax increase.
According to the president, they will try to find a solution to the already precarious situation.
“It is a big blow for us. We want to engage the government and see how best this can be dealt with,” he said as quoted by Standard.
The company announced mid this year that they will withdraw their support if the government would not reduce the rates.
And in a letter, the firm’s CEO Ronald Karuri said they will not be sponsoring the team federation and their operations.
The betting firms had moved to court challenging the government directive and other regulations, but their case was on Wednesday threw out.
According to Judge John Mativo, the regulations do not infringe on the rights of the betting firms.
“I find and hold that the new taxes do not infringe on the petitioners’ rights to the property since they are aimed at serving a legitimate public interest. The legislation was legally enacted and it overrides the legitimate expectation of the betting firms,” he said in his ruling.