Blow to Kenyan Sports.
Sportpesa who have been sponsoring a number of teams in Kenya have cancelled their sponsorship after high court failed to consider their appeal on the heavy tax burden.
The High Court last Thursday dismissed a suit by SportPesa and Pambazuka national lottery, seeking to stop implementation of a 35 per cent tax on all gambling revenues.
In the notice, the firm wants to overturn the ruling by Justice John Mativo, who argued there was no evidence to show the higher tax is punitive and that it was imposed as a deterrent to gambling.
SportPesa reckons that the higher tax rate is in breach of Article 201 of the Constitution, which demands the public finance system promotes an equitable society where the tax burden shall be shared fairly.
Sportpesa were the official sponsors of Gor Mahia, AFC Leopards, Sportpesa Super 8, Kenya Harliquins, The Kenya Boxing team, Nakuru All Stars, Kenya Rigby Union and Football Federation of Kenya.
SportPesa currently has partnerships with four English football clubs - Hull City,Arsenal, Southampton, and Everton. It is the main shirt sponsor for Hull and Everton.