DP Ruto warns SportPesa
SportPesa withdrew its sponsorship to all Kenyan clubs early this month.
Mr Ruto, who spoke on at the Sports Personality of the Year Awards (SOYA) gala night at KICC hit back at the betting firm which has henceforth stopped funding Kenyan clubs over the tax impasse.
“Paying taxes is a must, it is non-negotiable,” DP Ruto said, nearly two weeks after SportPesa withdrew its millions of shillings support to Kenyan clubs.
The sponsorship deals, according to SportPesa Chief Executive Officer Ronald Karauli were valued at Sh600 million a year.
The DP revealed that already the government has already set aside nearly Sh500 million to bridge the gap that has been left by SportPesa’s withdrawal.
Early this month, Consultancy firm PricewaterhouseCoopers (PwC) revealed Kenya’s betting tax (standing at 35 per cent after passage of new law) is the highest in the region and ahead of gaming hubs like the famed Las Vegas.
PwC argued in its report that the new 35 per cent tax on all gambling revenues is higher compared to other African countries like South Africa which charges 9.6 per cent, Rwanda (13) and Uganda (20).
Neighbours Tanzania replaced corporate tax in the gaming industry with a six per cent tax on revenue as an incentive to attract more players to invest in the business.
Developed nations of Germany (five per cent), Las Vegas (6.5) and Canada (20) have significantly lower rates than the Kenyan one which became effective from January 1.
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