SportPesa’s Chief Executive Officer, Ronald Karauri has issued a notice to all the clubs and sports union that the company sponsors that they will withdraw all their sponsorships beginning 1st of January 2018, arguing that the company will no longer afford the commitment owing to the increase of tax from the recently passed finance bill.
Sportpesa sponsorships currently exceed 1.5 billion shillings annually which runs down to thousands of direct and indirect jobs. Sportpesa is the current sponsor for Gor Mahia, AFC Leopards and Nakuru All Stars.
Besides the clubs, the club sponsors the Kenya Rugby Union, Football Kenya Federation, The Kenya Boxing Federation among others. This means that these sponsorship partnerships will seize to exist come 1st of January next year.
While this translates to lost opportunities in sports, this will cost a lot of jobs, one of the campaign promises that put Uhuru and Ruto in government and for sure, this will not translate well with the voter come August 8th.
Indeed, government cannot manage sports sponsorship and this could just mean the death of an industry that was just getting back on it’s feet.
Hopefully, the government can reconsider this before it comes to effect, we need this.