In a bid to intensify the war on graft, tough measures, especially on betting companies, had to be introduced. Recent investigations by government agencies now reveal that a notorious politician has been using betting companies to bank trillions of money after the government changed the currency. Is this war on corruption or an individual?
The company recently said it collected Sh20 billion in revenues, made Sh9 billion in gross profit and paid Sh6.4 billion in taxes in 2018.The announcement is against the backdrop of accusation on the industry’s tax commitment to the government.A report by a multi-agency team set by the state indicated that betting companies made about Sh204 billion last year but paid only Sh4 billion in taxes. Defending its activities, the betting firm further listed a number of social responsibility within the sports community and local communities.On the socio-economic investment, the company says it invested Sh693 million in football, Sh 600 million in rugby, Sh 75million in boxing, Sh2.8million rally, Sh73 million in agriculture, environment conservation, water access, Sh57 million in education infrastructure and Sh41 million in community health development.
The gaming firm also listed sports activities it sponsors in the country.It says, it sponsors the Kenyan Premier League and the official title sponsor of the Federation of Kenya Football Shield tournament, which provides an invaluable opportunity for the teams to display their talent.The advert also says the company has been running an initiative called Kits4Africa that encourages football fans to donate their old kit to underprivileged, grassroots teams across Africa.SportPesa also has a sponsorship deal with football giants Gor Mahia and AFC Leopards.
The announcement comes two days after the government ordered Safaricom to stop processing payments for sports betting companies, potentially shutting down a lucrative source of revenue for the companies.Many Kenyans argue that the closure of the betting accounts will impact heavily on millions who have made betting an occupation.Pevans East Africa Ltd, company behind SportPesa also provided Standard Digital with a copy of tax compliance (below):