Betting firm SportPesa has recalled the termination letters that were issued to its employees on October 2, after exiting the Kenyan market due to tough regulations.
According to the company Chief Executive Officer (CEO) Ronald Karauri, the company decided to withdraw the letters and have proper redundancy notices issued.
“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.
This follows a long battle that ensued between the betting company and the interior CS Fred Matiang’i who ordered closure of betting firms that did not adhere to the tax regulations.
the firm therefore opted to exit the market citing stringent regulations that were unfavorable for continuity of the business.
In the process, more than 400 employees were sent hoe, with the company only stating that they would be back in the market if the Kenyan government does away with tough taxation rules as well as the hostile environment.
“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 closure affected very many programs in the country especially sponsorship of clubs and different sports teams.
Ideally, youths have been rendered jobless and other businesses that were depending on the same halted.