Sportpesa named top taxpayer thrice by KRA, now haunted by State

For three years in a row, Kenya’s leading sports betting platform SportPesa received the top taxpayer's honour for tax compliance.

The third time was in March last year raising questions on why the government is accusing it of not paying taxes.

In 2016 and 2017, the gaming firm was honoured for its immense contribution to the economy.

During a certificate handover ceremony in 2018, Kenya Revenue Authority said the company has been very compliant in remitting its taxes.

"We want to thank and appreciate you for the role you play in the economy. It is our hope that you continue to grow." Emma Mwambia, a representative from KRA said.

CEO Ronald Karauri affirmed the firm’s commitment to the Kenyan market adding that he is open to talks on a fair tax policy.

"We are delighted to receive this recognition for the third consecutive time, given that we are only four years old yet we have managed to make a positive contribution to the economy," Karauri said.

SportPesa is among 10 companies to be honoured by KRA under the Medium TaxPayers category which has nearly 4,000 organisations in the last decade.

KRA’s Medium Taxpayers Office was established in November 2010 to serve the needs of mid-income organisations and to improve the compliance rate of these entities by addressing their unique needs.

On Monday, Sportpesa put up adverts in the dailies to demonstrate its commitment and contribution to the Kenyan economy.

According to the firm, in 2018, it made a revenue of Sh20 billion paying taxes worth Sh6.4 billion and a profit of Sh9 billion.

This is contrary to claims that the firm has been making upto Sh100 billion.

The firm also indicates that it has invested in various social-economic programs giving a breakdown of money spent in various sectors.

In 2018, Sportpesa says it spent Sh693 million in football, Sh600 million in rugby, Sh75 million in boxing and Sh2.8 million in rallying.

In addition, Sportpesa says that Sh73 million was contributed to agriculture, environmental conservation and water access. 

It also says that it spent on education infrastructure (Sh57 million) and community health development (Sh41 million).

Sportpesa also lists its sponsorship to Football Kenya Federation, AFC leopards, Gor Mahia, Kits for Africa, Sportpesa Shield, Sportpesa Premier and on boxer Fatuma Zarika.