Sponsorship millions spark factional wars and corruption claims at Kenya Rugby Union

When Mwangi Muthee was elected to chair the Kenya Rugby Union early this year, many saw it as a reward for his more than one year’s drive for change and accountability in what is arguably one of Kenya’s most popular sports.

But seven and a half months later, Mr Muthee has found himself in the spotlight defending his executive team from alleged misappropriation of sponsorship cash that has been flowing into the sport on strong showing of the sevens national team and the clean image the sport has had so far. 

Rugby has in the past few months attracted about Sh320 million in sponsorships for the next two years, making it one of Kenya’s best financed sports.

National carrier Kenya Airways leads the pack of sponsors with a Sh290 million package for the sevens team in the next two years, while East African Breweries has committed Sh45 million to the sport payable in the next three years.

Other sponsors flocked in for the Safaricom Sevens, which attracted about Sh45 million with Safaricom, the lead sponsor, contributing Sh30.2 million. But as the money has flowed in directors of the sport have been dishing out multi-million shilling supply contracts to companies they are associated with, putting Mr Muthee in a fix.

He cannot afford to rub members of the board the wrong way because they aggressively campaigned for him in the March elections.
“I am walking a tight rope with so many characters across the divide, young or old, who have varied interests in the game,” said Mr Muthee. “Our biggest war is against vested interests but we must make sure we destroy this dragon,” he said.

Mr Muthee’s biggest challenge comes from the fact that most of the directors who were in his camp during the bruising election now see this as their time “to eat”.

That support was critical to ending Richard Omwela’s eight year reign as the KRU chairman.

Local rugby clubs, who own KRU, are finalising plans to set up a company that will manage sponsorships and raise money for their operations and the Kenya Cup League.

Sponsors of the initiative said the idea was borne out of the realisation that cash from sponsors was not trickling down to clubs.

This means that KRU could soon face direct competition from its own members, a possible public relations disaster for the union that has tried to keep its house in order in recent years. The rift among the rugby union directors and their vested business interests  emerged during the organisation of the Safaricom Sevens event that was held two weeks ago. 

An email seen by the Business Daily and dated October 31, three days before the Safaricom Sevens kicked off, spills the beans.
Mr Jack Okoth, who was the Safaricom Sevens Organising Committee (SSCO) head of logistics, sent the mail to register his displeasure “at the way the chair is managing the Safaricom Sevens committee.

“This is motivated by the fact that there seems to be a lot of micromanagement, vested interest, and unnecessary interference,” Mr Okoth said in the email.

Mr Okoth further accused Myke Rabar, who chaired the SSCO having been appointed by the new office holders, of giving his firm an unfair advantage in procurement of services for the tournament.

Mr Rabar owns Homeboyz, the entertainment firm. “Being the CEO of Homeboyz entertainment that are suppliers and have sent quotations for various items with regards to the tournament, you should distance yourself from procurement of services as this presents conflict of interest,” said Mr Okoth, giving the example of the LPO of Copy Cat being withdrawn and Homeboyz taking over.