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Sportpesa Owners Lose Ksh2 Billion Assets To UK Government

Sport Pesa
Sportpesa CEO Ronald Karauri /courtesy

Liverpool-based SPS Sportsoft Limited is set to lose assets worth Ksh2 billion to the UK government after failing to renew its operating licence.

SPS Sportsoft Limited has the same shareholders as Kenya-based Pevans East Africa Limited, and ceased operations in 2019.

The UK government refused to renew SPS Sportsoft’s licence, claiming millions from the firm as unpaid taxes.

“The Registrar of Companies gives notice that, unless cause is shown to the contrary, the company will be struck off the register and dissolved not less than two months from the date shown above. Upon the company’s dissolution, all property and rights vested in, or held in trust for, the company are deemed to be bona vacantia, and will belong to the Crown,” SPS said a notice dated September 14, 2021.

Read: Kenyan Shareholders Cry Foul After Losing Over Ksh1 Billion In Sportpesa Share Shake-up

Pevans was SPS’s biggest client, paying Ksh3.1 billion in the nine months ended December 2018, accounting for 96 percent of the total revenue of Ksh3.2 billion in the period.

Other clients include Sportpesa Global Holdings Limited (SPGHL) (which runs Sportpesa brand in Tanzania and South Africa.

The UK government will however not inherit liabilities by SPS.

“Property, cash and any other assets owned by a company when it is dissolved automatically pass to the Crown. This is because the law says this happens. Liabilities of a company do not pass to the Crown on dissolution: they are normally extinguished,” the UK government says on the bona vacantia process.

This means that SPS’s creditors will a combined £8.5 million (Ksh1.2 billion), in case the process is concluded.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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