Sportspesa has moved to court to challenge a law signed by President Uhuru Kenyatta[Photo/Naibuzz]
In an attempt to reverse a law signed by the Head of State, Sportspesa has moved to court to challenge the 35% tax placed on the company’s revenues.
The new law which is set to take effect in January next year, was meant to discourage Kenyans from investing their focus on activities involving betting, lottery and gaming.
President Uhuru Kenyatta believes the move would encourage more creative and economic engagement while reducing youth from engaging in a vice that he believes will lead to social disaster.
The betting company responded by retracted their sponsorships and notifying their partners to brace themselves for financial cut backs.
The company, which is the largest sports sponsor in the country stated that it cannot manage the 35% betting tax and still maintain sponsoring clubs.
Major benefactors set to be affected include Football Kenya Federation (FKF), Kenyan Premier League and Kenya Rugby Union who were set to receive a staggering Sh1.5billion from the company.