The Football Kenya Federation has petitioned the government to review the proposed 50% tax rate on betting companies terming it “stringent.”

If implemented, Nick Mwendwa, FKF’s president says it may wipe out crucial investments recently undertaken by betting companies in football.

The proposal, contained in the Finance Bill 2017 and announced in the budget statement recently read by the national treasury Cabinet Secretary Henry Rotich seeks to increase the current tax rate (7.5%) payable under the betting, lotteries and gambling act to 50%.

“We support the government’s proposal to introduce a uniform tax across the board on betting, lottery and gaming and competition industry.

“However, we feel it is important to acknowledge the growth of sports marketing as an industry and also acknowledge that worldwide the private sector plays a big role in developing sports outside what is considered as national assets such as the national, youth and women’s teams,” Mwendwa said.

The government is championing creation of a National Sports, Culture and Arts fund, which will manage the takings from the betting firms.
Mwendwa is of the view that however much the idea is noble; it captures aspects that don’t reflect sporting activities.

“The implementation of the proposed National Sports, Culture and Arts fund should not curtail the unprecedented growth and beneficial sports sponsorship drive undertaken by the betting and gaming and lottery enterprises.”

The vibrant betting industry in Kenya has seen the firms come forth to plug the funding gap in sports easing the burden on the government.

Sportpesa, the biggest betting firm in the country, for example is the title sponsor of the Kenyan Premier League and shirt sponsors of two of the most supported clubs in the topflight Gor Mahia and AFC Leopards.

They also sponsor the national Rugby Sevens team “Shujaa”, the FKF and many other sporting disciplines.

Another betting company Betika recently baidl out struggling 2009 KPL champions Sofapaka.