SportPesa given greenlight to resume Kenya operations
Operator receives clearance from authorities following “notable progress” in meetings
SportPesa has been given the green light to resume operations in Kenya after settling its disagreement with the Kenya Revenue Authority.
In a statement released via Twitter, the company revealed it had made “notable progress” in meetings with officials from both the Revenue Authority and Kenyan government, and was now compliant with Kenyan tax laws.
SportPesa said the meetings aimed to create a shared understanding of the gambling industry and regulation, including tax administration.
The operator said its licence had been renewed following the meetings and it was confident of resuming full operations soon.
OFFICIAL UPDATE ON THE ONGOING LICENSING PROCESS pic.twitter.com/Uz15iN65Is
— SportPesa Kenya (@SportPesa) September 3, 2019
Fellow operator Betway received its own clearance to resume operations in Kenya last week, following confirmation from the Kenyan Revenue Authority that it was tax compliant.
However, as part of its deal to resume operations, Betway agreed to impose a 20% withholding tax on player winnings with immediate effect.
Reports in the Kenyan press claim that SportPesa has also agreed to the KRA’s new tax standards, including the 20% withholding tax on player winnings, however this has not been confirmed by the operator.
SportPesa has previously claimed the tax calculations used by the KRA were based on a “misunderstanding of how revenue generation in the industry works”.
This new agreement throws into question SportPesa’s now-terminated Kenyan sports sponsorships, which were ended in August over the “immense pressure” being levied by the Kenyan government.