A private European company, AFS International GMBH, has filed a petition at the High Court of Kenya seeking to declare the Football Kenya Federation (FKF) insolvent due to non-payment of Sh35.7 million. The case highlights significant financial troubles within FKF, leading to fears about the federation's capability to operate effectively.
According to the petition, AFS International, based in Italy and specializing in sports consultancy, claims FKF has neglected to settle the debt, citing numerous reminders. AFS asserts no application has been made by FKF to challenge the statutory demand for payment.
"That Football Kenya Federation be wound up by the Court under the provisions of the Insolvent Act. That the cost of this petition is to be provided to the petitioner out of the assets of the company in priority," the petition states. This legal move signals the gravity of the situation, forcing FKF to confront its financial obligations or face dire consequences.
The root of this issue lies within the contract signed on July 29, 2021, during the leadership of former FKF president Nick Mwendwa. The agreement granted AFS International the rights to market and secure sponsorship deals for FKF, covering both media and commercial rights for the Premier League and national teams.
Under the terms of the contract, AFS was entitled to 12 percent of the net revenue from any sponsorship deals secured. If FKF were to pursue sponsorship independently, AFS would receive six percent of the net revenue generated. The signatures on the contract include those of Mwendwa, Barry Otieno (former FKF Secretary General), and Andrea Silva (Director of AFS International), marking it as binding legal documentation between the parties.
Matters escalated when FKF entered a lucrative broadcasting agreement worth $9.1 million (approximately Sh1.3 billion) with Azam Media on August 31, 2023. Following this deal, AFS claims FKF has failed to pay the owed Sh35.7 million, which constitutes six percent of the broadcasting profits. Each new season is set to include up to $100,000 (around Sh14.5 million) increments, raising concerns about FKF's ability to meet growing financial expectations.
AFS International has indicated FKF has provided no significant information or assurance concerning the repayment of the debt. The consulting firm issued a notice for FKF to settle the outstanding payment by October 31, which has not been addressed.
To increase awareness surrounding the legal proceedings, AFS International took to advertising the petition, stating, "Any person intending to appear on the hearing of the petition (whether to support or oppose it) must give notice to do so to the petitioner or its Advocates."
The situation has raised numerous concerns about the governance and financial management within FKF, leaving fans questioning the stability of Kenyan football. Many are worried about how this might affect the future of the game and the opportunities available for players and teams.
Public sentiment appears to be leaning toward dissatisfaction with FKF's management, with fans expressing hope for greater accountability and improvements within the federation. Recent performance records and financial mismanagement have added to growing frustrations within the football community.
The potential insolvency of FKF is not just troubling for athletes and fans but also for the future of Kenyan football on the international stage. If the court approves AFS International’s petition, it could lead to the asset seizure of FKF, drastically affecting its operational capabilities.
This case serves as both a warning and reminder of the importance of financial stewardship within sports organizations. AFS International's actions may highlight the need for reforms and rejuvenation within FKF, fostering initiatives aimed to restore both governance and integrity to Kenyan football.
Overall, the situation remains fluid, and stakeholders are anxious about the upcoming court hearings, hoping for resolution and clarity on FKF's future, which not only affects its existence but the wider fabric of football across Kenya.