How SportPesa shifted billions in revenues abroad, paid less tax

Kariobangi Sharks player Nixon Omondi and Everton’s Morgan Sneiderlin during a SportPesa Cup Friendly match on July 7,  2019 at Moi International Sports Centre, Kasarani.

Photo credit: File | Nation Media Group

What you need to know:

  • Yet its UK costs were so low that its total pre-tax profits in that time were £33 million (Sh4.3 billion), a profit margin of 77per cent.
  • But tax experts have raised questions about the pricing arrangement.
  • In the 21 months to December 2018, 97 per cent of its £43.5 million (Sh5.7 billion) revenue was derived from Pevans.

Betting powerhouse SportPesa has been sucking revenues out of its lucrative Kenyan market by paying billions of shillings to a software development company it owns in the UK – an arrangement that has significantly reduced its tax bills.