SportPesa’s attempt at returning to business dealt a blow

By Brian Okoth On Fri, 30 Aug, 2019 18:33 | < 1 min read
SportPesa has announced that it has stopped operations in Kenya until the “hostile business environment” in the country improves. [PHOTO | FILE]
SportPesa has announced that it has stopped operations in Kenya until the “hostile business environment” in the country improves. [PHOTO | FILE]
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    An attempt by betting giant, SportPesa, to resume operations in Kenya suffered a blow on Friday, August 30.

    The High Court in Nairobi ruled that it can’t allow the company to get back to business on an expired license.

    SportPesa, through its mother company Pevans East Africa Limited, had filed a suit in court demanding that the State compensates it monies lost during the suspension.

An attempt by betting giant, SportPesa, to resume operations in Kenya suffered a blow on Friday, August 30, when the High Court in Nairobi ruled that it can’t allow the company to get back to business on an expired license.

SportPesa, through its mother company Pevans East Africa Limited, had filed a suit in court demanding that the State compensates the betting firm monies lost during the suspension, which was effected on July 1, 2019.

Justice John Mativo said the court was not privy to a contract entered by SportPesa and the State, which allegedly stipulated that the petitioner would be compensated should a breach of contract arise.

The court said it could not rewrite terms and conditions of the binding agreement.

The judge further stated that SportPesa failed to prove how the Government violated its legal rights.

“The circumstances of this case are that the petitioner’s licence has expired. Even if the court quashes the decision there is no basis the petitioner can operate on an expired licence,” said Justice Mativo.

SportPesa was pushed out of business on July 1, when the Government declined to renew its operating license after the betting firm allegedly evaded taxes to the tune of Ksh14.9 billion.