NAIROBI Kirk Cousins Color Rush Jersey , June 23 (Xinhua) -- Kenya sport faces a bleak future following the announcement on Friday by betting firm SportPesa that it will terminate all sponsorship contracts effective January 2018.
The sports industry has been surviving on shoe string budget, even with the meagre sponsorship from its financiers. However, the notice to withdraw all sponsorship with its sporting partners from next year communicated by CEO Captain Ronald Karauri, will leave the industry exposed and likely to collapse.
""As SportPesa we will be giving notice to clubs, sports unions and federations that from January 1, 2018 we will withdraw all sponsorship,"" Karauri said.
The development follows the government's decision to impose a 35 percent tax on net profits accrued by betting and gaming firms.
When the notice comes into effect, several sporting entities in Kenya, including top football clubs AFC Leopards and Gor Mahia, the national football teams Harambee Stars, plus the national rugby sevens teams will be severely affected.
SportPesa has pumped in an estimated 100 million U.S. dollars to Kenya's sports industry partnering with federations like football, rugby and boxing.
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