Global gaming company SportPesa have announced plans of closing down their operations in the country if the controversial 35 per cent tax law is effect in January 2018.
The company has said that it might move to Tanzania or the United Kingdom in a move that is likely to lead to loss of tens of jobs.
SportsPesa Global chief executive officer (CEO) Gerasim Nikolov said the company can no longer operate profitably with the current tax caps ineffective.
“There is nowhere in the world where such a huge tax is levied on turnovers and even here in Kenya, no firm can survive today if a 35 per cent tax was put on its turnover.
“Unfortunately, the ultimate effect of us shifting operations from here will be wide considering the various business that depend on this industry,” said Mr Nikolov told journalists in Nairobi today.
“There is nowhere in the world where such a huge tax is levied on turnovers and even here in Kenya, no firm can survive today if a 35 per cent tax was put on its turnover,” he said.
“Unfortunately, the ultimate effect of us shifting operations from here will be wide considering the various business that depend on this industry.”
This comes after President Uhuru Kenyatta signed the new tax figures for gaming companies into law, a fortnight ago. SportPesa Chief Executive Officer Captain Ronald Karauri said they would no longer be in business if they were subjected to paying 35 per cent of their total income.
