SportPesa Shuts Down in Kenya officially. To all betting and SportPesa lovers, it is now official that SportPesa has shut down its operations in Kenya.
According to an official statement from SportPesa, the move follows the introductions of the 20% withholding tax on all bet winnings placed on bets.
SportPesa Shuts Down in Kenya
The tax is based on a fundamental misunderstanding by the Rotich led treasury of how revenue generation works in the bookmaker industry. This decision will have a damaging impact on both customers and treasury.
Further compounded by the currently in-effect 20% Withholding Tax on Winnings, the economic incentive to place bets will be completely removed as the taxes will deprive consumers of their total winnings.
This will have severe consequences for licensed betting companies, which dutifully pay their taxes and ultimately will lead to a decline in government tax revenue to near zero and will halt all investments in sports in Kenya.Until such time that adequate taxation and non-hostile regulatory environment is returned, the SportPesa brand will halt operations in Kenya.