On Friday, gaming giants, SportPesa, cancelled all its sports sponsorships after experiencing various challenges in business.
In a statement released, the betting firm stated that it had been subjected to punitive measures by regulators such as delayed license renewal and suspension of paybill numbers.
"We regrettably wish to announce that due to the uncertainty of this situation, SportPesa will be cancelling sports sponsorships effective immediately. All clubs and partners will have received notices as provided for in their contracts," read part of the statement.
The firm stated that it was passionate about sports but the decision had been made, following immense pressure in business.
"We greatly value our partnerships and we will endeavour to resume support to the best of our ability when the business recovers," the firm stated.
Interior Cabinet Secretary Fred Matiang'i, on July 1, 2019, gave all betting firms three months to seek fresh renewal of licenses upon proving tax compliance.
However, after seeking fresh renewal, the firm was among the betting firms whose licences were not renewed by the government.
On July 12, 2019, the Interior CS stated that uncontrolled betting had reorganized the financial lives of poor Kenyans in very drastic ways.
"This money is directly pocketed by firms owned by non-Kenyans, a huge chunk of which is transferred to foreign capitals, and very little is left in circulation here in Kenya,” Matiang’i remarked.
President Uhuru Kenyatta had also affirmed that he would not reverse the government's decision to shut down the paybill and shortcode numbers of 27 firms until their licenses are renewed.
