Exclusive: SportPesa slams “false” Kenyan regulatory claims over tax bill
Operator claims Kenyan government is attempting to charge tax on turnover rather than revenue
SportPesa has hit back at the Kenyan government over claims it has not paid enough tax in Kenya, claiming the tax office has used incorrect figures in an attempt to close down the sports betting sector.
In a statement provided to EGR, a spokesperson for SportPesa said the figures cited by the Kenyan government were “false” and based on a “misunderstanding of how revenue generation in the industry works”.
SportPesa said the discrepancy was caused by the government incorrectly counting all bets as revenue and failing to account for pay-out of winnings to customers.
“The regulator and the Kenyan government wrongly claim that the industry has not paid sufficient tax and is using this as a political tool in an attempt to shut down the sector,” SportPesa said.
SportPesa customers are currently unable to deposit due to payment blocks imposed by Kenyan telcos, following government pressure.
The company said the decision to block payment services for players is illegal and in direct defiance of the high court’s ruling that said it is in line with the country’s tax rules.
SportPesa confirmed it is currently seeking compensation from the Kenyan authorities for lost earnings as a result.
On Monday, a court hearing was held to determine if the actions of the BCLB and the Kenyan Interior Ministry were in contempt of court and if any punitive action should be taken against both.
A verdict on the case is due to be delivered on 19 September.