Gor Mahia FC and AFC Leopards, the two top Kenyan football clubs, have criticized a government plan to reinstate a 20 percent excise tax on betting stakes.
In September 2019, the tax was doubled from 10 percent, resulting in the departure of SportsPesa, the largest sportsbook operator. The company had sponsored Gor Mahia and AFC Leopards, but cancelled those deals in a dispute over the tax. The excise tax got shelved last year, and SportPesa returned.
Then last month, the tax was introduced again and awaits word from Parliament which must vote for the legislation, according to iGaming Business.
Gor Mahia Chairman Ambrose Rachier and Leopards Chairman Dan Shikanda said Kenyan sports—particularly football—depends on sponsorships from betting companies. Both teams signed sponsorship deals with Bettson brand Betsafe in 2020. These kind of sponsorships have contributed up to Kes1.6 billion (US$14.8 million) to clubs between 2016 and 2020.
“The enactment of the 20 percent excise tax will unequivocally rule out continued sponsorship of football clubs across all tiers, with the net effect of rendering the operations of most of the league teams unsustainable,” Shikanda and Rachier said.
Indeed, it could force suspension of the second half of the season, the two said.
“We as representatives of the top tier football clubs in Kenya and by extension the sports fraternity feel that this tax proposal is ill-timed. Give the sports clubs a fighting chance during these difficult times.”
Gor Mahia and AFC Leopards are both based in Nairobi and are the two most successful clubs in the country. Gor Mahia has won the Kenyan Premier League 18 times and AFC Leopards 13 times.
