The Rise and Fall of SportPesa: A Kenyan Betting Empire

At its peak, SportPesa was Kenya's fastest-growing and most visible brand, rivaling giants like Safaricom. Founded in 2012 by a diverse group of businessmen led by Bulgarian national Gassim Nikolov and Kenyan politician Dick Wathika, the betting company quickly expanded its influence, not only locally but internationally. The company’s meteoric rise was fueled by aggressive marketing and major sponsorships in local football, as well as deals with Premier League teams like Everton and Arsenal.

The journey began with Nikolov, who, after several business ventures, partnered with Wathika and established PEVANS East Africa Ltd, the parent company of SportPesa. Though they faced financial challenges early on, Paul Ndung’u, a wealthy Kenyan businessman, injected crucial capital. Later, Ronald Karauri, a Kenya Airways pilot and poker enthusiast, also invested, ultimately becoming SportPesa's CEO after Wathika's untimely death in 2015.

SportPesa thrived, becoming a global brand. They dominated the Kenyan betting industry and expanded internationally, sponsoring events like Formula 1 and European football clubs. However, as their success grew, so did the criticism. The Kenyan government expressed concern over gambling addiction and the fact that SportPesa was shipping large sums of money overseas.

In 2017, President Uhuru Kenyatta increased taxes on betting, which led to financial strain for the company. By 2019, SportPesa faced a staggering tax bill of KSh 95 billion from the Kenya Revenue Authority, which they disputed. Ultimately, the company lost its license and was forced to cease operations.

Behind the scenes, internal power struggles ensued. Founders Paul Ndung’u and Wathika’s widow, Asenath Waithera, found themselves ousted, as new political connections, allegedly involving the Kenyatta family, took over the business. Despite a brief hiatus, SportPesa made a controversial return in 2020, but by then, competitors like Betika had taken over much of the market share.

While SportPesa still operates today, it no longer dominates the industry as it once did. Internal disputes, regulatory pressure, and fierce competition have transformed the Kenyan betting landscape, leaving SportPesa to navigate a very different future.