Kenyan soccer giants Gor Mahia and AFC Leopards have described the government’s expected reintroduction of the 20% excise tax on betting as harmful to the Kenyan sports sector.
In a joint statement released Thursday after Kenya’s annual budget was unveiled, the two clubs, through Chairs Ambrose Rachier (Gor Mahia) and Dan Shikanda (AFC Leopards), said: “The public is aware that football is in Kenya largely supported since 2016 by sponsorship offered by betting companies similar to major leagues around the world. The passage of this law will not allow any clubs currently supported and sponsored by various betting companies to continue their operations. “
“Sponsorships have kept clubs and allegedly the football league itself going and helped develop players and clubs. This applies to other sports that benefit from similar sponsorships.”
They went on to say, “Between 2016-2020, over 1.6 billion Kes were invested in local clubs and millions more in TV rights, advertising and merchandise, which has helped raise the profile of football clubs in Kenya.”
“After a season without fans due to the Covid-19 pandemic, our clubs were largely dependent on the support of our sponsoring partners. We are not yet out of the woods with an unpredictable future and no foreseeable return to full stages. “
“The passage of the 20% excise tax will clearly rule out continued sponsorship of football clubs across all divisions (National Super League, Division 1 and County Leagues), with the net effect of making most league teams unsustainable. You may know that our clubs have had extremely difficult times financially and with this tax, which our main sponsors will no longer be able to continue their partnerships, it will certainly be an own goal for Kenyan football as it will result in an interruption, if not a suspension would be the second half of the season. This would also have a negative impact on the eagerly anticipated 2022 season, which should mark the great restart of our full-fledged top-flight football in Kenya. “
“This is not the first time the excise tax has been proposed for incorporation into law, and the wisdom that prevailed when the law was suspended needs to be reinvigorated given the projected impact on the sporting sector. This is particularly necessary “given the challenges we continue to face with the Covid-19 restrictions.”
“As representatives of the top football clubs in Kenya and thus also the Sports Brotherhood, we are of the opinion that this tax proposal has come at the wrong time and we urge the government and Members of Parliament to give special consideration to this urgent matter and to unite the Sports Brotherhood Chance to fight in these difficult times. “