Sofapaka are set to experience a drop in revenue from sponsors, Betika.
The gaming firm signed a Sh50 million annual sponsorship deal with Sofapaka in 2017, but the figure could be revised downward this year following the government's move to impose a 35 percent tax charges on betting revenue.
Unlike SportPesa who cut all sports sponsorship after they lost a case challenging the proposed tax increment, Betika decided to honour their contract with Sofapaka but under revised terms.
“The 35 percent tax will certainly affect our bottom line but rather than pull out completely from sponsoring Sofapaka, we have opted to review the sponsorship and negotiations are currently going on to that effect,” Patricia Njeri, the firm’s marketing manager was quoted by The Standard.
“The team did very well last season with our support and we, therefore, do not want to completely withdraw sponsorship.”
Sportpesa’s withdrawal also affected Gor Mahia, AFC Leopards and Football Kenya Federation.