Kenya Sportpesa sponsorships estimated at GBP 7.5 million

The Kenyan Government’s controversial 35 percent tax rate on all gambling revenue generated by operators – substantial rise from the previous 7.5 percent – is already impacting sports sponsorship agreements ahead of its January 1, 2018 implementation.

Ronald Karauri, chief executive officer of Kenya sports betting group SportPesa, indicated the company will reluctantly withdraw all Kenya sponsorships agreements citing the negative affect the new 35 percent tax would have on business operations (see previous report).

According to Kenyan news agencies, those sponsorships are estimated to be worth Sh1 billion (approx. GBP 7.5 million).

Sportpesa currently sponsors two of the biggest Kenyan football teams – Gor Mahia and AFC Leopards, the Kenyan Premier League (KPL), Kenya Football Federation, Kenya Rugby Union and the Kenya Boxing Association.

Karauri emphasised that SportPesa’s sponsorship of teams outside Kenya (where a more reasonable tax regime presumably exists) will not be affected. The betting company currently sponsors English teams Everton and Hull City as well as clubs in the Tanzanian premier league.

Karauri is a multi-millionaire entrepreneur who founded SportPesa in 2014 with a $4 million investment from a group of investors. The company reportedly now has a turnover of more than $100 million annually and has operations in Kenya, Tanzania and the United Kingdom.

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