Betsafe Exits Kenyan Market As Taxes Increase, Employees Rendered Jobless

• Betsafe has previously sponsored AFC Leopards and Gor Mahia in the Kenya Premier League (KPL)
• The Betsafe website remained accessible as of Wednesday, May 15, but it was not allowing new signups
• A proposal in the Finance Bill 2024 wants to increase the tax on betting stakes to 20% from 12.5%

Muyela Roberto is a seasoned journalist at TUKO.co.ke, boasting over nine years of experience in the digital media landscape. He possesses extensive expertise in financial reporting and is adept at editing. His professional journey includes notable tenures as a business and current affairs writer at People Daily, Kenya News Agency, Scholar Media and TUKO. At TUKO, he has also honed his skills as a copy editor for three years before moving to the business desk.

Sports betting platform Betsafe has closed shop in Kenya after being in operation for about four years.

The platform joins the league of several other firms and investors who have exited Kenya recently as a result of tough economic environments.

The shutdown means all employees have been rendered jobless.

"Betsafe ceased its operations in Kenya on May 14," CEO Victor Sudi said, as quoted by Business Daily.

No new signups on Betsafe

Those who tried signing up on the platform on Wednesday were met with this message:

"It looks like something went wrong on our end, it seems we cannot find the page you are looking for. Please check the URL and try again."

During its operations in Kenya, Betsafe was, at some point, the sponsor of Gor Mahia and AFC Leopards in the Kenya Premier League.

It joins other major betting platforms that have exited Kenya, including Betin. Sportpesa has managed to stand the test of time.

It had, however, closed its business in Kenya for some time after it clashed with KRA over tax payment.

SportPesa reopened under Milestone Games Limited and is currently operational.

The winding up of the business comes at a time when gaming is becoming a target for the taxman. Currenly, the finance bill 2024 proposes increasing the tax on stake from 12.5% to 20%.

Betting firms pay 30% corporate tax on profits and are also expected to pay 15% in gross betting revenue.

Foschini Group exits Kenya

In April 2024, South African-based company Foschini Group, which deals in clothing, jewellery accessories, sporting and outdoor equipment, as well as homeware, announced closure of its Kenyan frontier.

It appointed two joint liquidators in Kenya to clear claims from creditors.

List of other businesses that have exited the Kenyan market:

• The Game Stores
• Builders Warehouse
• Shoprite
• Africa Oil
• NKG Coffee Mills

Which companies have scaled down operations in Kenya?

• Jumia shut down its food delivery operations across seven African countries, including Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast.
• Bayer East Africa announced that effective May 1, 2024, it would employ the services of a third party to distribute its goods.
• Base Titanium indicated that raw materials were dwindling, and thus, it could not sustain its operations beyond December 2024.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.