- SportPesa CEO Ronald Karauri is poised to table a proposal bill aimed at club privatization and tax incentives.
- This initiative forms part of a broader, long-term vision following the landmark partnership between the premier gaming company, SportPesa, and the Football Kenya Federation.
- The agreement grants SportPesa exclusive sponsorship rights for the top-tier league over the next decade, valued at Sh1.12 billion.
SportPesa CEO Ronald Karauri has revealed plans to table a legislative proposal in Parliament aimed at transforming some local football clubs into private companies, moving away from the current society-based model.
This initiative is part of a broader, long-term vision following the landmark partnership between the leading gaming firm, SportPesa, and the Football Kenya Federation.
The agreement grants SportPesa exclusive sponsorship rights for the top-tier league for the next decade, valued at Sh1.12 billion.
Speaking during the official launch of the SportPesa League and the new league logo at The Glee Hotel in Nairobi on Tuesday, September 16, the CEO stated that as part of efforts to grow local football, he intends to propose legislation in the National Assembly in the coming months.
This bill would facilitate the conversion of clubs into companies instead of their current status as societies.
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SportPesa CEO Ronald Karauri to table proposal for club’s privatization and tax incentives
Additionally, he will be seeking tax rebates for those newly incorporated club companies.
“I’m working on it personally. In the next few months, you will see me proposing a bill to ensure our sports clubs are registered as companies rather than societies,” Karauri stated.
At the same time, I will be advocating for a tax rebate. Remember, when you operate as a company, you don’t want to be categorized in a way where you’re burdened with heavy taxes. It should be a different kind of business model.
So, we want to ensure that even if they are registered as companies, they won’t lose the benefit of tax incentives.”
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SportPesa CEO explains why clubs should become corporations
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The CEO further elaborated on the justification behind corporatizing the clubs, emphasizing stability, profitability, and improved management.
“These clubs should be private companies. That way, those running them can focus on generating profit and operating professionally.
If a CEO is hired, they would be accountable for revenue generation: through ticket sales, sponsorships and ensuring players are employed and paid regularly. This would eliminate persistent issues like unpaid player salaries.”