Media production house sacks 20

The effects of a tax increase on gambling firms from 1^st January have started sinking in, barely a week after the closure a national lottery. Protel Studios, a Nairobi-based production house for TV and radio programmes, has been forced to sack over 20 employees after the termination of the Pambazuka National Lottery and TV programmes sponsored by SportPesa left them without much work to do.

An independent media content generation company, Protel Studios produces television and radio programmes. One of its biggest and lucrative assignments was the Pambazuka National Lottery (PNL) show that aired on NTV, K24 and Njata TV.

The company also produced Sports Central for KTN and KBC TV on Thursdays on behalf of SportPesa, the leading sports betting company.

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On Friday, on 12^th January, just five days after NPL closed as the new 35% tax came into effect, the media production house gave sacking letters to 20 employees, according to sources, dealing a blow to many careers. Also, at least 60 employees of the PNL show that was broadcast live on Sundays had their jobs terminated.

The government introduced a mandatory 35 per cent tax on all gambling ventures, a move that did not augur well for the gamming industry. SportPesa has also pulled out of their multi-million sponsorship deal for top the Kenyan sides Gor Mahia and FC Leopards and the running of the leagues.

Protel Studios has a presence in Kenya, Nigeria and Uganda. Locally, it will be left with production of comic works for Hapa Kule News and The Real House Helps of Kawangware. It also produces Citizen TV’s Sunday evening Pika na Power cookery programme.

Players in the industry hope the sackings could get the authorities to review the tax to protect local jobs, while others are pushing for talks between players and government, which has held that the higher tax is deserved.