Betsafe, a leading online betting firm, has announced its exit from the Kenyan gambling market effective May 14th, 2024. The decision comes amidst a climate of escalating taxation that has driven several major players out of the multi-billion shilling industry.
According to Betsafe CEO Victor Sudi, the excessive tax burden proved unsustainable for the company’s operations in Kenya. “The increased taxation levels have simply made it impossible for us to continue operating profitably in this market,” Sudi stated.
Betsafe is the latest in a string of high-profile departures from the Kenyan gambling sector. Other prominent names such as Betin have previously shuttered their local businesses, citing similar fiscal pressures.
The Kenyan gambling industry, valued at over 200 billion shillings annually, has been grappling with a wave of regulatory reforms in recent years. Authorities have implemented a raft of tax hikes and stricter licensing requirements in a bid to boost revenue collection.
However, industry analysts argue that the aggressive measures have had the unintended consequence of driving away major operators. “These tax increases have created an environment that is simply untenable for many businesses,” said gaming analyst James Omondi.
The exit of Betsafe and other prominent firms is expected to have significant ramifications for employment in the sector. Sudi confirmed that the company’s withdrawal has rendered its entire Kenyan workforce jobless.
The developments come as the Kenyan government seeks to strike a balance between safeguarding tax revenues and maintaining an attractive investment climate for the lucrative gambling industry.
