2020-07-01

NAIROBI - This investigation reveals Kenya's enormous betting addiction. Leaked figures from the betting regulator show that punters wagered more than US$300 million in a single month in 2019.

A follow-up investigation reveals that at the same time the Kenyan government removed a tax for betting companies, a cousin of Kenya's president accumulated a financial stake in betting giant SportPesa.

A betting nation

The staggering size of the local betting industry emerged from a leaked spreadsheet of revenue declarations made by gambling firms to the Betting Control and Licensing Board (BCLB) for May 2019, shortly before the government introduced tougher regulations and higher taxes.

Extrapolating from this monthly figure, punters were on track to spend more than US$3,4 billion on betting annually had the government not stopped the party.

This amount is US$2,4 billion more than what the national government allocated to health in 2019/20. 

The leaked data reveals that Kenyan punters staked nearly 180 million individual bets in a single month.

Sports betting firms set for comeback?

In a follow-up article, the journalists reveal that the Kenyan government appears to have reversed its stand on sports betting, with the removal of a tax that saw most companies exit the country.

The journalists discovered that at the same time there has been a quiet change in the shareholding of betting giant SportPesa, which exited Kenya the previous year during the tax controversy.

Details buried in corporate filings in Kenya, the United Kingdom and the Isle of Man reveal that businessman Peter Kihanya Muiruri, a cousin of Kenya's president, has over the past 14 months acquired stakes in three companies that are part of SportPesa’s international gambling empire.

This means that a SportPesa revival in Kenya, enabled by the removal of the tax, would also benefit a member of president Kenyatta’s own family.

Impact

As a result of the publication of this investigation, the Kenyan government back-pedalled on the controversial tax cut, less than 48 hours after President Kenyatta signed it into law. Treasury has promised to reintroduce the tax via a "proposal" to Parliament in 6 months' time.

 

This investigation by journalists Lionel Faull and Paul Wafula was published in the Daily Nation, Kenya's leading independent newspaper.

Lionel Faull

Lionel Faull is a reporter for Finance Uncovered. He has worked on several award-winning team investigations, including the GuptaLeaks in 2017 and the Panama Papers in 2016.

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A grant of €700 was allocated on 1/08/2019
ID
MT/2019/077
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ONLINE

Shocking details of Sh30bn-a-month bets - Daily Nation, 18 May 2020

Sports betting firms set for comeback - Daily Nation, 1 July 2020

Revealed: Cousin of Kenya’s president has stake in SportPesa betting firm - Finance Uncovered, 1 July 2020

PRINT

A Betting Nation - Daily Nation (front page), 18 May 2020

Leaked data lifts lid on shocking details of Sh30bn-a-month bets - Daily Nation (p.1011), 18 May 2020

The return of sports betting - Daily Nation (front page), 1 July 2020

Sports betting firms set for comeback after tax demand shelved - Daily Nation (p.2), 1 July 2020

How gaming industry's steep rise ended in a screeching halt - Daily Nation (p.3), 1 July 2020

IMPACT

Yatani makes U-turn, to reintroduce betting tax - Daily Nation, 3 July 2020

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