SportPesa to withdraw sports sponsorship in 2018

Sports Reporter, Nation Media Group.

What you need to know:

Giant gaming firm SportPesa has given notice to withdraw all sponsorship arrangements with sporting partners from next year.
This announcement was made by the firm's CEO Captain Ronald Karauri via Twitter.
The development comes amid government decision to impose a thirty five percent tax on net profits accrued by all betting and gaming firms.

Giant gaming firm SportPesa has given notice to withdraw all sponsorship arrangements with its sporting partners from next year.

This announcement was made by the firm's chief executive Captain Ronald Karauri via Twitter on Friday.

"As @SportPesa we will be giving notice to clubs and unions that from January 1 we will withdraw all sponsorship," Karauri tweeted.

35pc tax

The development follows the government's decision to impose a 35 per cent tax on net profits accrued by betting and gaming firms.

READ: 50pc tax will drive us out of business, say betting firms

ALSO READ: Rotich raids gamblers, hard liquor consumers

When the notice comes into effect, several sporting entities in Kenya, including top football clubs AFC Leopards and Gor Mahia, the national football teams, plus the national rugby teams will be severely affected.

SportPesa has pumped in an estimated Sh1 billion to Kenya's sports industry through their various partnerships with Football Kenya Federation, Kenya Rugby Union, Kenyan Premier League, AFC Leopards, Gor Mahia, Nakuru All Stars and the Kenya Boxing Association.

READ: Betting firms say Uhuru ill-advised on 35pc tax rise