A Pambuzuka National lottery raffle exercise being conducted on a local television channel (Photo/ tuko.co.ke)
Pambuzuka National lottery has been forced to close its operations in Kenya citing the 35 per cent tax increase has impacted negatively in their business.
In a statement sent to newsrooms on Sunday, 07, Pambuzuka said that the new tax rate has increased their total operating cost to 115% hence therefore they have been forced to close.
"Operating any lottery under this framework is not possible and therefore business operations are forced to close," Pambuzuka lottery said in the statement.
The company said that the new tax effect on all ticket sales has made them cease operations until a "sustainable regulatory framework" is put in place.
The company stated that it will pay all prizes to the winners as at Saturday 06, directly through their Mobile phones or jointly at their offices on April 7.
"All prize claims after yesterday's draw will be paid out to winners directly or from the company offices on April 7th 2018," it stated.
Sportpesa has been leading a revolt against the new tax rate with CEO Karauri seeking pardon from president Kenyatta to shelve the tax. Sportpesa has also withdrawn it's local sponsorships in the country teams.