KENYA Law and Practice Contributed by: John M. Ohaga, SC and Joy Wanyika, TripleOKLaw Advocates
• A Society: This is the most common legal form for non-professional clubs and federations. Many amateur clubs and national sports governing bod - ies are registered as societies under the Societies Act (Cap. 108). This structure is typically non-profit and membership-based. It is preferred where the objective is the development of sport rather than profit distribution. • Companies Limited by Guarantee: Some sports organisations adopt a company limited by guaran - tee structure under the Companies Act, 2015. This is also a non-profit structure, but with more formal corporate governance requirements than a society. • Companies Limited by Shares (Professional Clubs and Commercial Ventures): Professional sports clubs, event promoters and commercially driven entities often register as private limited liability companies under the Companies Act, 2015. Sports organisations choose their structure based on their purpose and funding model: • non-profit development focus – society or com - pany limited by guarantee (profits reinvested; no dividends); • commercial/professional focus – company limited by shares (ability to raise capital and distribute profits); • governance credibility and sponsor confidence – company structure (clear director duties and statu - tory compliance); or • regulatory recognition under the Sports Act – fed - erations often maintain society structures due to historical governance models and membership- based voting systems. 4.2 Corporate Governance Codes There are no sport-specific governance codes. How - ever, governance of sports bodies is regulated primar - ily under the Sports Act, 2013, which establishes the legal framework for the registration, recognition and oversight of national sports organisations. 4.3 Sport Funding Sport is funded through a combination of public fund - ing, commercial revenue and private investment. The primary source of public funding is the national gov - ernment, mainly through allocations from the relevant
ministry responsible for sports under the national budget. A significant statutory funding mechanism is the Sports, Arts and Social Development Fund (SAS - DF) established under the Public Finance Manage - ment framework. The Fund supports national teams, stadium development, grassroots programmes and major international participation. Government funding is typically allocated to national federations for elite competition, administration, and participation in national teams. Some funds are ear - marked for infrastructure and youth development pro - grammes. Federations distribute funds internally to leagues, regional branches and development programmes according to their constitutions and budgets. Professional clubs rely more heavily on sponsorship, broadcasting revenue and ticket income to fund oper - ations, player salaries and infrastructure. Grassroots and amateur sport depend largely on lim - ited government grants, county support, and local sponsorship. 5. Intellectual Property, Data and Data Protection 5.1 Trade Marks Trade marks are registered under the Trade Marks Act (Cap. 506) through the Kenya Industrial Property Institute (KIPI). KIPI examines the mark for distinctiveness and con - flicts with existing registrations. If accepted, the mark is published in the Industrial Property Journal for opposition. If no opposition is filed (or it fails), the mark proceeds to registration and a certificate is issued. Registration is valid for ten years and renew - able indefinitely. The following cannot be registered: • marks that lack distinctiveness; • generic or descriptive terms (unless they have acquired distinctiveness through use);
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