Controversial blogger Robert Alai has claimed that online betting company Sportpesa has surpassed Safaricom in earnings despite the provider being the betting site’s conveyor platform.
In aFacebook post on Thursday, Alai said the online betting company’s earnings have allowed it to sponsor leagues in wealthy countries despite Kenya always begging for funds from foreigners.
“Sportpesa is said to be currently making money more than Safaricom's M-Pesa. While M-Pesa's carry-on transaction volume is far much higher than that of Sportpesa, the latter's model make it a much more lucrative business,” he says.
He says insiders at Safaricom have expressed surprise at the volumes Sportpesa is churning on a daily basis.
“They watched in disbelief as Sportpesa was transacting way above imaginary levels. The mobile provider had to even sabotage M-Pesa and force it to pay them a higher rate from their earnings.”
Alai questioned what the benefits would be for the betting company as the sponsorship deal may not be worth it unless the money was given to other bankable teams.
“Surprise came in the announced Sh6 billion payout to Hull City. It's not clear what return the deal would give the betting company but it seems to be a brand positioning move which might never make business sense in the near future. The EPL might only boast of, at most, a dozen supporters in Kenya,” he adds.
He also wonders why Kenya should borrow should Sh100 billion from a foreign country when businesses in Kenya repatriate such amounts to European countries.
Alai adds that Sportpesa is not the most visible Kenyan blue chip but hundreds of Kenyan companies are in that league implying that Kenyan should not be in debt externally.
“What if our govt relied on them for loans and grants? Yes we must maintain our domestic debt at a certain debt but research has shown that we can create more growth and use the money well when we borrow locally from those who understand us the best,” he opines.
He also proposes that the ownership of Safaricom be reviewed: “I suggested that the continued ownership of M-Pesa by Vodafone should be ended or greatly cut down but this is not in the interests of the blindly greedy leaders. Same way, only a foolish regime would allow such a treasonous business crime to be committed by the likes of Sportpesa. What do you expect in a country where the Deputy President owns a betting company?” he poses.