The betting firms entry into the country took the market by storm and things have not been the same and since the government saw the good money the industry was making, it was decided to make a good earn from the same.
The betting and gaming industry is one of the most highly taxed sectors in the country. SportPesa has steadily increased its tax payments in its five years of existence.
Last year they paid Sh4.6 billion to the Kenya Revenue Authority, money that can then be used to fund government activities.
In 2014 when it started out, SportPesa paid Sh19 million in taxes.In 2015, they paid Sh800 million; in 2016 Sh3 billion; and in 2017 Sh3.5 billion.
Many people argue that SportPesa can afford to pay even more.But Captain Ronald Karauri, CEO of SportPesa, argues that there is a misconception about how the the gaming industry works.
In a TV interview he explained that when you buy a lottery ticket for Sh100, that goes straight to the company as revenue until they pay out the prizes.
With sports betting, when someone places a bet of Sh100, that money does not go to SportPesa until after the the game.
If the guy wins the bet, SportPesa pays it back with odds.It only becomes revenue if the punter loses the bet.So that makes SportPesa revenue look more than it really is.
SportPesa and other gaming companies believe that the tax environment is too harsh rather than too lenient.
Last September the Finance Bill said that who punters should pay 20 per cent of their winnings as tax.
However the Finance Bill reduced the tax rate for betting operators from 35 per cent of gross gambling revenue to 15 per cent.