Sports contracts in Kenya govern the relationships between athletes, clubs, agents, sponsors and governing bodies across football, athletics, rugby, basketball and other sports. As Kenyan sport professionalises and commercial opportunities grow, well-drafted sports contracts help each party protect its position and give a clear route for resolving disputes. Whether you are a club, an athlete, an agent or a sponsor, it is worth understanding the legal elements of sports contracts in Kenya before you sign.
Sports contracts in Kenya: the legal framework
Sports contracts are governed first by the general law of contract, including the Law of Contract Act (Cap. 23) and the common law, and, where a player is engaged as an employee, by the Employment Act, 2007. The Sports Act, 2013 supplies the institutional framework: it establishes Sports Kenya (section 3) and the Sports Disputes Tribunal (section 55). Federation rules, and the rules of continental and international governing bodies, also form part of the contractual picture in many sports, because a player and club are usually bound to follow them.
Player employment contracts
The Employment Act defines an employee as a person employed for wages or a salary. A player engaged by a club on the usual terms, a salary, club control over training and match selection and exclusivity, will often fit that description whatever the contract is called, because the substance of the working relationship matters more than the label. Some individual-sport professionals and athletes with separate image or endorsement structures may fall outside a straightforward employment relationship, so classification should be checked against the actual arrangement.
Two statutory points follow where there is an employment relationship. Under section 9 of the Employment Act, a contract of service for a period, or a number of working days, amounting in aggregate to the equivalent of three months or more, or for specified work that could not reasonably be completed in that time, must be in writing. Section 10 requires a written contract to state particulars of employment, including the job description, the date of commencement, the form and duration of the contract, the place and hours of work, and the remuneration and how it is calculated and paid.
Key terms in a player contract
A comprehensive player contract should address the term and any renewal options; remuneration, including salary, signing-on fees, performance bonuses and benefits such as accommodation; the player’s obligations on training, match availability, club rules and outside commercial activity; the club’s obligations on payment, facilities and medical care; image rights; transfer and release provisions; and dispute resolution. Termination and release clauses deserve particular attention where the club is a member of an international federation, because the federation’s regulations on termination, compensation and transfers may apply alongside the contract and can change. Parties should check the current text of any federation rules incorporated into the contract rather than rely on assumptions about how a payout would be calculated.
Image rights agreements
Elite athletes often enter into image rights agreements that are separate from the playing contract and govern the commercial use of their name, image and likeness. Some structure these through a personal services company to which rights are assigned and which then licenses them to clubs and sponsors. That structure has commercial and tax consequences, so it needs specialist legal and tax advice. The agreement should define the rights granted, the territory, the term, the permitted media and any exclusivity.
Agent representation agreements
An agent representation agreement should set out the scope of the agent’s authority, the basis on which commission is calculated and paid, the duration of the appointment and the grounds for termination. Sporting bodies often regulate agents and may limit or require registration of agent activity, and those rules have been the subject of legal challenge in some jurisdictions, so the applicable federation regulations should be checked at the date of signing and the commission term expressed in a way that can survive a change in those rules.
Sponsorship agreements
A sponsorship agreement is a commercial contract in which a sponsor provides money, goods or services in exchange for defined marketing rights. Typical provisions cover the sponsorship package, naming and kit branding rights, digital and media rights, exclusivity against competing sponsors, the sponsor’s approval of branding use, termination rights triggered by breach or a reputational event, and activation obligations. Morality or reputational clauses should be drafted with care so that the triggering conduct is clear.
Resolving disputes under sports contracts
Section 58 of the Sports Act gives the Sports Disputes Tribunal jurisdiction over appeals against decisions of national sports organisations whose rules allow appeals to it, over other sports-related disputes that all parties agree to refer to it and that it agrees to hear, and over appeals from the Registrar. A dispute clause that names the Tribunal, or another forum, therefore matters. Our guide to sports disputes in Kenya explains the Tribunal’s procedure and how its decisions can be challenged, and our guide to sports governance in Kenya covers the wider regulatory framework.
How We Can Help
Clay & Associates Advocates drafts and reviews player agreements, sponsorship and image rights agreements and agent contracts, and represents parties in sports disputes. Our litigation and dispute resolution practice acts for clubs, athletes and sponsors, and our sports industry page sets out our work in the sector. To discuss a contract, please contact us.
Sources: Employment Act, 2007, sections 2, 9 and 10, Kenya Law; Law of Contract Act (Cap. 23), Kenya Law; Sports Act, 2013, sections 3, 55 and 58, Kenya Law.
Frequently asked questions
Is a professional player an employee in Kenya?
Often, yes. The Employment Act defines an employee as a person employed for wages or a salary, and courts look at the substance of the arrangement, so classification depends on the working relationship rather than the contract’s title.
Does a player contract have to be in writing?
If it is a contract of service for three months or more in aggregate, or for work that could not reasonably be completed in that time, section 9 of the Employment Act requires it to be in writing.
Can image rights be kept separate from the playing contract?
Yes. Image rights are commonly dealt with in a separate agreement, sometimes through a personal services company, but the structure has commercial and tax consequences and should be advised on.
Where are disputes under a sports contract heard?
That depends on the dispute clause and the federation rules. Section 58 of the Sports Act gives the Sports Disputes Tribunal jurisdiction over appeals where federation rules allow them and disputes the parties agree to refer to it.
Need advice on your own matter?
Tell us what you are dealing with. You will know what it involves and what it costs before you commit.
This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
