Kenya MPs ask for reversal of betting firms’ licenses suspension

Kenya's Parliament.

2019-08-22

Kenya

Reading time 1:31 min

Members of the lower and upper houses of Parliament have issued a joint statement requesting the executive government to authorize the companies to resume their operations.

According to the members of the National Assembly and the Senate, the suspension of the firms’ licenses could cripple the sports sector, which relies heavily on sponsorship by the affected companies.

Over 20 betting firms have been denied licenses in a Sh61 billion (USD 9.6 B) tax row, Standard Digital reports.

SportPesa and Betin, which have been sponsoring local tournaments, including the Kenya Premier League, are some of the affected companies.

The MPs also claimed that Kenyans employed in the affected firms risk losing their jobs.

Speaking in Nairobi, Kakamega Senator Cleophas Malala accused the Government of criminalizing the betting business and threatening the very existence of players in the industry.

“Some individuals are misleading the President and Interior Cabinet Secretary (Fred Matiang’i) on the actual revenue of betting companies,” Mr Malala said.

Malala claimed there was a deliberate scheme to frustrate top betting firms and cited Dr Matiang’i’s orders to expel 17 directors accused of tax evasion.

“The deportation was a blatant violation of their rights. They were deported unprocedurally and we ask the Government to reconsider and have them back in the country.”

Nominated Senator Isaac Mwaura said visually impaired people and those with albinism were being harmed by the stalemate after SportPesa stopped providing them with braille machines and sunscreen.

Molo MP Kimani Kuria wondered why there was no consistency in the application of the law, arguing that SportPesa was recognized as the best tax-compliant company in the recent past yet it now faced tax-evasion charges.

“There is something sinister about the management of sports funds in the country. The Government needs to be accountable on how it utilizes the funds,” said nominated MP Geoffrey Osotsi.

Embakasi East MP Babu Owino claimed orders to revoke the firms’ licenses were issued by a top Government official who has shares in another betting firm.

“They are frustrating the giant companies so that their own companies can flourish,” Mr. Owino said.

The legislators also asked for the revision of the formula that taxes staked betting amounts.