Betting company SportPesa has given a notice to withdraw their sponsorship deals with all their sporting patners in Kenya.
According to a tweet by SportPesa Chief Executive Ronald Karauri, the withdraw from sponsoring the clubs as well as all other sports unions takes effect from January 1 2018 following the goverment decision to tax betting companies 35 per cent of their profits.
“As @SportPesa we will be giving notice to clubs and unions that from January 1 we will withdraw all sponsorship,” Karauri tweeted.
The withdraw will affect Football Kenya Federation,Kenya Premier League,Kenyan Premier League giants Gor Mahia and AFC Leopards together with Nationwide legaue side Nakuru All Stars from next year.
Sportpesa had signed a sponsorship deal with Kenya Premier League estimated at 450 million.The shirt deal with Gor Mahia estimated at Ksh50 million per season for five seasons.AFC Leopards also benefited with 40 million sponsorship deal all signed in February 2015.
Various betting firms have entered into the sports sponsorship market to help boost their prominence hence good for their businesses as they target football fans into betting.
Most of Kenya clubs have had very turbulent financial times in the recent past and may likely get back there following the notice. It remains to be seen whether the federation and clubs managements will comment on the same, as it will no longer business as usual next year.