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Wrangles kill Safaricom's sports support

Thursday March 19 2015
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Welsh Warriors Captain Martin Turner celebrates winning the Safaricom Sevens plate trophy with Safaricom CEO Bob Collymore (centre) on September 28, 2014. PHOTO | CHRIS OMOLLO |

Kenya’s football, athletics and rugby federations have been thrown into a spin after telecommunications provider Safaricom withdrew its sponsorship deals with three.

The withdrawal will deny federations millions of shillings in sponsorship, affecting their activities locally.

Safaricom chief executive Bob Collymore said his company will stop funding Athletics Kenya (AK), the Kenya Rugby Union (KRU) and Football Kenya Federation activities since they have been marred by leadership wrangles, claims of corruption and financial mismanagement.

Athletics Kenya have already started to feel the heat as they will not be able to hold camp for the team preparing for the World Relay Championships to be held in May in the Bahamas. Safaricom sponsored the relays last year.

At the Sports Personality of the Year (Soya) Awards Gala on January 16 in Nairobi, Collymore said Safaricom would end its relationship with federations that have not been accountable and transparent.

Collymore said the lack of transparency had dented the image of football, athletics and rugby management, and they have to put their houses in order.

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Collymore said the control of such funds needs to be above reproach.

“We are custodians of shareholders’ money and I can’t think of any sponsor who wants to get into activities where unethical behaviour continues,” he said.

It is not only Safaricom that is dissatisfied with the happenings in rugby, athletics and football.

The World Rugby organisation has also stopped its annual grant of over $100,000 to KRU.

In addition, Kenya Commercial Bank, which has been sponsoring the AK National Cross Country Series, among other events like golf and rallying, have indicated that they will reduce or even terminate their sponsorships to federations that are embroiled in wrangles and lack accountability.

The Kenyan government is threatening to cut its funding to sports federations and organisations that are yet to comply with the provisions of the Sports Act 2013.

Through the Ministry of Sports, the government has said it will not fund any activities of a federation that has not been registered.

There have been sustained campaigns for a regime change in the three federations, with AK and KRU affiliates demanding special general meetings.

The SGM for the AK, convened by a group led by Paul Mutwii, was stopped by the High Court in November last year.

The SGM convened at KRU took place, with Sasha Mutai being elected as new chairman, replacing acting chairman Gabriel Ouko. However, KRU sought High Court redress to stop Mutai’s team from taking office.

The High Court referred the case to the Sports Tribunal, but KRU went ahead with an AGM on March 17 that saw the return of Richard Omwela as chairman after eight years.

Mutai’s group has vowed to continue with their programmes, throwing rugby into uncertainty.

Safaricom had signed a $1.6 million a year deal with KRU in 2013, to sponsor the Safaricom National Sevens Series, which includes the Dala Sevens, Christie Sevens, Kabeberi, Driftwood and Prinsloo Sevens. Last year, the sponsorship agreement was renewed for a further three years.

The deal also incorporated the annual International Safari Sevens that has attracted some of top rugby nations like Fiji, France and Argentina.  

READ: Sevens set to thrill rugby fans

KRU, which had been a role model for sports management for more than a decade, has been hit by boardroom wrangles that have threatened the game.

Last year, three KRU board members, Godwin Karuga, Maurice Masiga and Peninah Wahome, and chairman Mwangi Muthee, resigned. At the AGM on March 17, Rajinder Sembi, Ian Mugambi, Paula Lanco and Oscar Mango were elected as directors.

“People who don’t have the game at heart have no clue what impact the withdrawal of sponsorship will have on rugby’s activities,” said Mutai. “Our programmes will stop, and other investors will lose confidence.”

Two years ago, Safaricom launched the Safaricom Athletics Series. Last year, the company pumped Ksh80 million ($880,000) into AK and community races. The funding also covered the national trials and events like the Soya Awards gala.

The Kisumu and Mombasa Marathons are part of the Safaricom Series, and will be greatly affected in terms of prize money and quality participation, if at all they are held.

“Athletics is one of the biggest beneficiaries of government funding, hence the Sports Ministry’s threat about the provisions of the Sports Act 2013 should be taken seriously,” said athletics analyst Barnabas Korir.

“We are still in negotiations with Safaricom because we need them for our programmes. At the same time, we are complying with the Sports Act,” said AK treasurer Jonathan Miano. “Our programmes will still run.”

Safaricom’s football sponsorship has not been direct, as they invested in renovating Kasarani Stadium at a cost of $3.3 million.

An attempt to fund a youth football tournament, Sakata Ball, was scuttled in 2012, after two successful outings in which Safaricom spent $1.4 million.

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