Betting Firms Forced to Cut Costs
Sportpesa, one of Kenya’s largest betting operators, was heavily affected by the tax change. According to Ronald Karauri, CEO of Sportpesa, the company had no choice but to reduce its sponsorship commitments to manage the rising financial burden.
Major Sports Suffer Sponsorship Losses
Sportpesa had been a significant sponsor of various Kenyan sports, including the national football federation, the premier league, and top clubs such as Gor Mahia. Additionally, the company backed the national rugby union and boxing. The withdrawal of these funds has left organizations like Gor Mahia struggling.
Gor Mahia’s chairman, Ambrose Rachier, warned that the club might have to withdraw from this year’s Confederation Champions League Cup due to a lack of finances. The club had been receiving 60 million shillings annually from Sportpesa.
Rugby Union Also Hard Hit
The Kenya Rugby Union, which was receiving 120 million shillings per year from Sportpesa, has been similarly impacted. The funds were primarily used to prepare squads for the international rugby sevens series, as well as to cover training and match allowances for the national 15-a-side team.
Richard Omwela, chairman of the rugby union, emphasized the severity of the situation. “It is a total shutdown. Unless the government steps in and says we will underwrite that, what we possibly will do is tell our suppliers and partners that we can’t meet our obligations.”
Broader Problems in Kenyan Sports
Kenyan sports have long suffered from issues of mismanagement and corruption. Poor administration has hindered athletes’ performance on the global stage and has led to a loss of public support at home. In 2016, for example, Kenyan sports officials were accused of mishandling logistics for the Rio Olympics, with allegations of stolen kits and botched flight and accommodation arrangements.
Despite these challenges, Kenya’s athletes delivered an impressive performance in Rio, securing six gold, six silver, and one bronze medal, all in track and field events. However, the recent funding cuts pose a significant challenge for future successes on both the local and international stages.
