Kenyan Football suffers terrible blow as sponsors backout

31 Décembre 2017

Nairiobi, Kenya, December 31 (Infosplusgabon) - Kenyan football suffered a big blow on Sunday after top sports sponsors, SportPesa, terminated its partnership with the sport, citing introduction of a tax hike by the government.

SportPesa, the sponsor of Kenyan Premier League Football Kenya Federation (FKF) activities, including the senior national team, Harambee Stars, rugby and boxing, withdrew  the sponsorship after the National Treasury implemented a 35 percent tax hike on gaming companies with a view to raising money for the establishment of a National Sports Lottery.

The government mooted the idea earlier in the year, a move that saw the gaming companies appeal the decision at the High Court.

Among their arguments was that the move will discourage the private sector from backing sports through their Corporate Social Responsibility Programmes (CSR).

At any rate, they argued that the government does not pump adequate funds into sports, instead it gives priority to areas such as health, education, defence, security and infrastructure.

They also said the high taxation will eat into their profits.

On Wednesday night, the High Court in Nairobi dismissed the appeal, arguing that the government's move was noble and geared towards public good.

Earlier in the year, SportPesa, Kenya's sporting betting giant, had alerted their benefactors that they will withdraw sponsorship if the  hike is effected.

On Sunday, SportPesa CEO, Ronald Karauri, wrote to the FKF, communicating their decision to end the partnership, adding that they had no option but to take the painful decision.

In 2016, FKF and SportPesa signed a five-year US$ 5million partnership deal that saw the firm cater for the senior national team, Harambee Stars' coach, Paul Put's salary, and  also meet the team's preparations fo the 2018 FIFA World Cup and 2017 Africa Cup of Nations qualifiers preparations.

FKF says the withdrawal has left the federation with an annual US$ 1million funding gap that will be hard to fill.

FIN/INFOSPLUSGABON/VIN/GABON 2017

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