Former Kakamega Senator Boni Khalwale on Tuesday urged President Uhuru Kenyatta to ‘resist’ any blackmail from the sports betting company Sportpesa over the decision to pullout from sponsoring local sports clubs.
In a tweet to the president hours after the company announced a shocker to stop any sponsorship due to the controversial 35 per cent tax scale, Dr Khalwale told off Sportpesa, which he alleged was raking in billions, yet was in a ploy to avoid taxes.
“President Uhuru Kenyatta must resist the blackmail by Sportpesa! This fellows rake in, in excess of 15 billion per annum, without as little as selling any goods or services. They must pay tax! We cannot just turn our country into a national casino!” he said to his nearly 200,000 followers.
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He added: “I repeat. Kenya cannot and must not be turned into one giant national casino! So as to please some people, SportPesa included!”
The sentiments by the former senator added a voice to millions of Kenyans, who sensed a shifted blame game by Sportpesa to seek sympathy form the government, many roughly coming up with an income of nearly Sh15 billion per annum, which is said not to be taxed.
On Tuesday, Sportpesa Chief Executive Officer Mr Ronald Karauri announced a cancellation of all local sports sponsorship ‘immediately’ in response to imposition of 35 per cent tax on all gambling revenues.
The lottery's CEO, however, clarified that the cancellation of the sponsorships didn't mean they were closing their operations in Kenya.
Kenya Rugby Union (KRU) in a statement said it received the news with great dismay after the cancellation of its partnership with the popular betting firm.
The question of just how much money SportPesa makes in Kenya was at lay on Tuesday after the giant betting company made good its threat to withdraw its commitment to all local sponsorships.
Mr Karauri faced a series of questions from journalists wanting him to address the common belief that the company is making obscene profits, especially in the Kenyan chapter, hence the need to increase the tax rate.
Karauri, who cut a dejected figure as he delivered the news of their decision, deflected by saying that it shouldn't be about how much money the company makes, but about whether or not it can “continue to sustain the existing sponsorships under the new tax law.”
The company maintained that instead of considering layoffs it will have to pull out all its support to the clubs.