SportPesa recalls termination letters issued to workers

In Summary

• The firm had however said it would consider returning to market when adequate taxation and a non-hostile regulatory environment is returned.

SportPesa staff being addressed by CEO Ronald Karauri after the firm closed operations.
SportPesa staff being addressed by CEO Ronald Karauri after the firm closed operations.
Image: COURTESY

Betting firm SportPesa has recalled termination letters issued to employees at the beginning of the month.

CEO Ronald Karauri told the Star on Thursday that the firm decided to withdraw the letters so that they can issue proper redundancy notices.

“We are basically been advised to issue proper and legal notices even as we wait for the Betting Control and Licensing Board to act on our application,” Karauri said.

On October 2, the firm sent home more than 400 of its employees after announcing it had halted operations in Kenya due to tough regulations.

SportPesa had expressed disappointment with the government's decision to impose a 20 per cent excise tax on all betting stakes, adding to the 20 per cent on customer winnings.

“The economic incentive to place bets will be completely removed as the taxes will deprive consumers of their total winnings and will halt all investments in sports in Kenya,” the company's statement read.

The firm had however said it would consider returning to market when adequate taxation and a non-hostile regulatory environment is returned.

The closure of the betting firm had led it to stop their sponsorship to clubs.