SportPesa cancels all sports sponsorships

Business News

SportPesa confirmed they have cancelled all African sports sponsorship in the country with immediate effect.

SportPesa is a direct sponsor of the Kenyan Premier League (KPL) and two clubs that participate in the top-tier – AFC Leopards and Gor Mahia, pumping Sh96 million, Sh55 million and Sh65 million directly into the three entities as well as supporting boxing and others sports.

The company, alongside other gaming firms, have however had issues with the government after Interior Cabinet Secretary Fred Matiangi cancelled their operating licenses over tax issues and subsequently their M-Pesa Paybill numbers were blocked.

The firm, in a statement to newsrooms on Friday, confirmed they were terminating all sports sponsorships in the country with immediate effect.

“SportPesa as a business has been subjected to punitive measures by regulators such as delayed licence renewal and the suspension of paybill numbers with these actions considerably reducing the level of business operations. This despite the existence of a court order prohibiting the regulator from taking such actions,” read the statement in part.

“This, has brought about immense pressure on business necessitating a re-evaluation of some plans. In light of these developments, we regrettably wish to announce that due to the uncertainty of this situation, SportPesa will be cancelling sports sponsorships effective immediately. All clubs and partners will have received notices as provided for in their contracts …” it adds.

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