Kenya – Betin sacks all its staff

After the big war on legislation of the new taxes imposed on betting companies in Kenya of the 20% tax. Betin as one of the company has gone ahead to sack all its staff living many jobless in these hard economic situation.

What does this mean to the country of Kenya? In short Kenya people those who depended on this sports betting company will be seen deprived of their wellbeing since this has been a source of income to them and their families, to this there are a lot of employees in different categories ranging from managers, accounts.

Security, secretarial cleaners, and to the outsourced side the service providers, landlords and to a greater part the livelihood of those sacked, what next for these employees.

“Management has had several extensive meetings with the government entities regarding the company’s licence without much success”

– read an internal memo signed by the managing director.

“Given all these, we have had financial constraint as you might all expect. As a result of the deterioration of the profitability, the management has had to rethink its operating model and to proceed with the exercise of termination on account of redundancy.”

The firm said it was only able to pay its staff for three months beginning July when the government kicked off a crackdown on betting firms in the country, but cannot sustain it beyond October.

“We hereby notify you that your positions will be rendered redundant on October 31, 2019. This notice is given in accordance with Section 40 of the Employment Act 2007 and as such the provided for will apply to al, staff affected,”

– read the memo.

With the Betting Control and Licensing Board (BCLB) taking too long to renew operating permits for most gaming firms, it was projected that the move would lead to job losses in the industry.

The board has maintained that the renewal of the licences is dependent on operations and directors of the firms getting a clean bill of health in an ongoing security vetting process.

All gambling firms, whose annual licences are renewed at the end of June, are undergoing fresh vetting following a directive issued by Interior Secretary Fred Matiang’i on April 1.

Dr Matiang’i had said the permits for all betting firms will be suspended from July 1 unless they complied with the law, including payment of all outstanding taxes.

Source: standardmedia.co.ke

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