Sportpesa have announced that they will withdraw their sponsorship from Kenyan football clubs.

The move will take effect from January 2018 – According to reports, the move comes as a result of President Uhuru Kenyatta’s assent of a bill that raised tax on betting firms.

Several local football clubs have been dealt a major blow when Sportpesa announced that it will withdraw its sponsorships. Through their CEO Ronald Karauri, the firm announced that starting January 2018, all sponsorships for clubs and Federations will be withdrawn.

The move was instigated after President Uhuru Kenyatta assented to the contentions bill on betting tax. Karauri justified the move as one that is the best for business after the “Heavy tax” that has been imposed on betting firms.

On Wednesday, June 21, Uhuru signed 9 bills into law, including the Betting, Lotteries and Gambling Act (Cap. 131) which consequently increased tax rates on betting from 15 to 35 percent.

Among the most affected clubs will be giants Gor Mahia, AFC Leopards, and Nakuru All stars , all from the local Premier League.

The move also means that the firm will detach from sponsoring the local premier League from 2018, reverting it back to the Kenya Premier League (KPL).

Other local sports entities such as the National rugby team are also set to be affected. It is estimated that the betting firm has pumped more than 1 billion Ksh into the Kenyan sporting fraternity, since they took over in sponsorship.