The Government has promised to step up and fill in the gap left by Betting firms that have withdrawn their sports sponsorship following the 35 percent tax imposed on them.
Deputy President William Ruto says that the government has set aside Ksh 500 million to cater for the expenses of the clubs whose contracts were terminated because of the tax.
Ruto was speaking at the 14th edition of the Sports Personality of the Year Awards (Soya) held in Nairobi.
Kenya’s largest betting firm Sportpesa withdrew its commitment to all local sponsorships due to what it says is an unsustainable tax burden brought about by the new tax laws.
The government imposed a 35 percent gaming tax on gross earnings for all betting firms in Kenya.
Sportpesa cancelled all sponsorships with Football Kenya Federation, (Harambee Stars coach) Paul Put, (assistant coach) Andreas Spiers, Kenya Premier League, Kenya Rugby Union, Gor Mahia, AFC Leopards, Nakuru All-Stars, Boxing Federation and the Super 8 grassroots tournament.
The Finance Bill (2017), which was signed into law by President Uhuru Kenyatta in June 2017, amended The Betting, Lotteries and Gambling Act to increase the tax rates to 35 per cent., effective from January 1, 2018.
SportPesa sponsorship in local sports is worth approximately Sh600-750 million per year.
