Betting firm SportPesa has denied that it is planning to leave Kenya over a new law signed by President Uhuru Kenyatta two weeks ago that imposes a 35 per cent tax on its revenues.The firm now says that a statement from the firm's Global CEO Gerasim Nikolov at a media briefing on Friday was taken out of context.“Our CEO was simply trying to demonstrate that no business can survive such heavy taxation on revenue and not profit,” SportPesa said in a brief statement on its Twitter page on Sunday.“SportPesa was the first and remains the best gaming brand in Kenya and SportPesa will be the last gaming brand to ever close in Kenya for whatever reason,” it added.Mr Nikolov’s statement on Friday suggested the firm was on its way out of Kenya because of frustration brought on by the tax increase.He had said the company can no longer operate profitably under the new taxation regime.“There is nowhere in the world where such a huge tax is levied on turnovers and even here in Kenya, no firm can survive today if a 35 per cent tax was put on its turnover."Unfortunately, the ultimate effect of us shifting operations from here will be wide, considering the various business that depend on this industry,” said Mr Nikolov at a media briefing Friday.Last month, the SportPesa founder announced the withdrawal of sponsorship for local sports clubs starting in January next year, citing the new tax burden.
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SportsPesa now denies Kenya exit plan
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