Following the recent hiccups the Kenyan gaming industry has experienced with Sportpesa, fears that investors may become wary of investing in the industry have set in
It is common knowledge that the Sportpesa brand has been having its afflictions in the past few months from the boardroom to the Court of Justice, but with the continuity of the trend, it is believed that “If it is not nipped in the bud, it will cause a gloomy and fraught future for other businesses where success may become their downfall” according to the-star.co.ke.
The predominantly one-sided narrative by news outlets and government agencies has further caused a negative stir in the direction of the brand, and third-parties who are supposed to be “neutral and independent” to the situation have taken sides, engaging campaigns that smear the integrity of the company and its shareholders.
From 2019 up to as recent as last week, Interior Cabinet Secretary Fred Matiang’i made some allegations against some directors of some of the gaming companies in Kenya. These allegations include “money laundering, tax evasion, and some other unspecified activities.”
On these grounds, the allegations lead to the deportation of foreign investors, however, Matiang'i hasn’t provided any evidence to support his claims and the actions taken by the government.
However, it is notable that there several companies including companies in the betting industry have had tax disputes with Kenya Revenue Authority without summons from Betting Control and Licencing Board (BCLB), some of these companies include Nakumatt and Keroche Breweries.
In 2017, “there have been speculation and rumours that some local shareholders have been scheming on how to wrestle SportPesa from the hands of 'non-locals'” The Star reports. In light of how recent controversies were handled, The Star highlights it is important to adhere with regulation and law in order to reach the standard and reassure private investors.
Source: The Star
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