FINANCING SPORTS IN KENYA: A CASE OF KENYA BASKETBALL FEDERATION

BY

MARK OUCHE OBONYO

Abstract

Globalization has brought more public embrace for sports as a

source of health fitness, economic activity, cultural exchange

and preservation, and social cohesion. Government of Kenya, for

instance, recognizes the role of sports in promoting tourism and

attracting investors. Through ministries concerned with sports

and various federations such as Kenya Basketball Federation (KBF)

sporting activities have been nurtured and the Government has

channeled its much needed support. However, KBF has over the

years slacked in its mandate owing to lack of finances begging a

study into its financing. This study looked into its sources of

finance, constraints faced and corporate strategies that could be

used to boost its finances. The exploratory survey was conducted

on KBF management (both national and provincial offices) and

clubs participating in national and provincial leagues. Data was

1

gathered using questionnaires and from KBF annual reports and

descriptive analysis applied.

The findings established that basketball in Kenya suffered from

limited financial sources which majorly included scanty

sponsorship and grants, minimal gate collections, players’

contributions, league or tournament fees among other unreliable

sources. The sources were not enough in meeting both the needs of

the clubs, players and the Federation. Most importantly,

basketball suffered from lack of government financial support and

policy, public apathy to the sport and improper management of the

Federation and clubs. It was suggested that, among other things,

the Federation needs to attract sponsorship, professionalize both

its management, that of the clubs and basketball in the country.

Key Words: Sport Financing, Basketball, Kenya

Background of the Study

There is growing recognition of the importance of sports in

building capacities both in individuals and communities that

enable them to participate effectively in socio-economic

development. Engagement in sports is essential for nurturing and

sustaining good health, a prerequisite for economic development.

According to Pitts and Stotler (2002), the sport industry

represented the eleventh fastest growing industry in the world.

This accelerated growth fuelled the desire of many people to

pursue careers in the sport industry. Sport is now a major

2

component of the entertainment and leisure industry competing for

the discretionary income of households (Ibid). As professional

sports continue to grow in recent decades, sports have gained

recognition as a vital part of the burgeoning mass entertainment

industry (Worsnop, 1995). This phenomenal growth and increase in

value of athletes provides testimony to the revenue generating

potential of sport.

The Government of Kenya recognized the role of Kenyan athletes

towards promoting Kenya’s tourism through their contribution in

exposing Kenyan sports endowment abroad. Kenya is known worldwide

as a sports powerhouse as evidenced by the highly rated track

athletes. Some of the Kenya’s athletes are highly priced in

foreign counties where they earn millions apart from being

offered citizenship opportunities (Wanjohi, 2010).

Over the years, a number of National Sports Federations (NSFs)

have come up to develop sports. One such NSF is Kenya Basketball

Federation (KBF), which was registered in 1972. As NSFs continue

to increase in number, the Kenyan government has struggled in

financing them in the face of budget cuts. It is common for

upcoming NSFs with promising future prospects to face financial

difficulties and fail to secure redemption from GoK (Wandera,

2012 and Wahome, 2005). The Kenya Rowing and Canoe Association

(KRACA) could not get financial support from the Ministry of

Sports to enable it to train and expose junior rowers for future

international races including Beijing Olympics in 2008. Lack of

3

finances has, thus, contributed to slow growth and development of

sports in general (Cornish, 2007 and Obura, 2011).

KBF activities have expanded to include international

competitions leading to increased financial demand. Many

basketball teams in Kenya as other sports are often cash strapped

with constant appeals made through the media for well wishers to

salvage them. The worst hit, are normally self sponsored teams

that are denied opportunity to participate in National leagues

and international championships (Kagan, 2000). This situation

leads to missing of opportunities by the unemployed school

leavers. A self sponsored Coast Youth Centre basketball team

could not sustain itself in the 2005 Kenya Basketball League

despite being highly rated (Wanjohi, 2010).

Ironically, in Kenya, despite the athletes bringing international

glory and injecting into the national economy substantial foreign

exchange, there seems to be no clearly defined sports financing

policy (Wahome, 2005). Thus, many a times, Kenyan teams have

failed to meet their financial requirements for effective growth

and development. They have not honoured many of their local

events and occasionally upon struggling and composing national

teams fail to participate in international championships or send

lean teams due to financial constraints (O'were, 2011). This

raises a big question on how the concerned federations are

financed. Like corporate firms, Kenya Basketball Federation

(KBF), although established as a Not- for- Profit Sports

4

Organization has the overall goal of maximizing the welfare of

its stakeholders. To realize this objective sound-financing

strategies must be employed. Pandey (1995) asserts that

financial management is sound when there is judicious sourcing,

use and control of an organization’s financial resources. He is

supported by Gitman (2005) who amplifies this as the art and

science of managing money soundly.

The objective of this study was to explore the constraints facing

financing of sports in Kenya a case of Kenya Basketball

Federation. The study sought to conceptualize corporate

approaches to financing sports in tandem with developing global

trend of sports commercialization. The central focus would be:

(i) Identify the sources of finance, annual contribution of

each source and determine those sources with the

potential of improving KBF financing scheme.

(ii) Investigate the constraints in financing KBF and

establish the causes of the constraints.

(iii) Explore corporate strategies that could improve KBF

financing scheme.

This study lies in an attempt to throw light on financing sports

federations in Kenya, exploring their potential for enhancing

improved financial flows and possible strategies for

strengthening them financially. Improved financial strength of

KBF would lead to high quality performances and organization of

5

basketball activities. This would create more business interests

to meet increased demand for facilities, equipment and related

services. The findings here in could be replicated for specific

and further research in Economics of sports and Sports financing

in Kenya.

Literature Review

Western European Model of Sport Financing

According to Andreff (1998), the Western European Model of sports

financing is a decentralized one in which sports financing

increasingly rely on the direct and ever closer relations between

participants (and spectators) and local decision makers.

Household expenditure forms the biggest source of sports

financing, followed by local government. Although variations

exist between countries in Western Europe, central government

sports budget and enterprise contributions are minor. He further

observed that there were tendencies towards private financing of

sports with a stagnating or decreasing state financing. A number

of European countries have developed laws and policies on

decentralization of sports financing. The Western European Sports

financing model can be summarized in a schematic chart as

presented in Figure 1:

6

Figure 1: Western European Model of Sport Financing (Andreff, 1998)

From the Western European model, it is obvious that new modes of

sports financing keep evolving as the government support continue

to be reduced and confined to social benefit to the taxpayer.

Even in local governments, there is more inclination to economic

logic for example, municipalities utilize sports activities to

improve, advertise and sell the image of the city and similarly,

attract tourists, commercial and industrial business on its

territory (Andreff, 1998).

These local authorities have joined the economic rationale, which

characterizes the private enterprises, sponsors and TV channels

involved in sports business. For them, it is the return on

investment, which matters. Sports participants and households

have embraced the logic of being like commercial clients. Sports

participants consume more sports goods and services. This trend

7

EXTRANEOUS SOURCESVoluntary workBig sports marketSports enterprisesCentral government budgets

MAIN SOURCES OF SPORTS FINANCING:House hold expenditureLocal governmentDistrictsRegionsMunicipalities

SPORTS

FINANCING IN

EUROPE

has decreased public subsidization with sports practice

developing outside the federations, sports clubs and other sports

organizations. This has led to more private financing (Andreff,

2002).

The European sports financing logic has created a transformation

in the rationale and behavior of sports federations to maintain

social influence and sustainability (Andreff, 1998). Sports

federations have adopted:

i) More self-financing through investment in income generating

projects.

ii) Improved self-management that incorporates professionalism

in the management.

iii) Increased self-employment, by creating opportunities for

players, coaches and other technical personnel.

iv) More self-education, through continuous strategic

transformation. Federations have become learning

organizations

v) Increasing capacity of sports participants through more

vocational training in Sports clubs and federations

The sports federations in Europe have therefore avoided being

swallowed by profit seeking organizations and have enjoyed good

financial health.

8

American Model of Sports Financing

The American model of sports financing slightly differ from the

European model (Bourg, 1995). In the American model, private

businesses and enterprises contribute more to sports financing.

This includes TV, sponsorship and private ownership of sports

clubs. There are striking similarities to the European model,

particularly in the financing of sports federations. The models

depict the general sports financing logics in both Europe and

America. National variants of the models in individual countries

exist. The main differences are rooted in domestic organization

of sports, in some specificity in the structure of sport finance

and in the sports practice, which are financed (Hoehn and

Szymanski, 1999).

From the foregoing analysis of the European and American

concepts, sustainable financing of sports federations in Kenya in

general and KBF in particular require the development of a sound

and contextually realistic financing concept. Following successes

realized in sports financing in Europe and America, this study

borrowed heavily from the European and American models to

conceptualize financing of sports in Kenya, particularly, KBF.

The major variables in financing sports in Kenya can be

conceptualized as illustrated in Figure 2.

The American model of sports financing slightly differ from the

European model (Bourg, 1995). In the American model, private

businesses and enterprises contribute more to sports financing.

9

This includes TV, sponsorship and private ownership of sports

clubs. There are striking similarities to the European model,

particularly in the financing of sports federations. The above

models depict the general sports financing logics in both Europe

and America. National variants of the models in individual

countries exist. The main differences are rooted in domestic

organization of sports, in some specificity in the structure of

sport finance and in the sports practice, which are financed

(Fort, 2006).

From the foregoing analysis of the European and American

concepts, sustainable financing of sports federations in Kenya in

general and KBF in particular require the development of a sound

and contextually realistic financing concept. Following successes

realized in sports financing in Europe and America, this study

borrowed heavily from the European and American models to

conceptualize financing of sports in Kenya, particularly, KBF.

The major variables in financing sports in Kenya can be

conceptualized as illustrated in Figure 2.

10

Figure 2: Conceptual framework

Research Methodology

The study adopted Exploratory Survey and Content Analysis

designs. Exploratory Survey was used in describing the status of

11

INDEPENDENT VARIABLES MODERATOR

VARIABLESDEPENDENT VARIABLE

EXTERNAL SOURCESTicketing,GoKNOCKFIBA – AfricaDonationsSponsors

SOCIO ECONOMIC FACTORS

Economic performance,Household expenditure,Size of sports market,Sports enterprises,Policy constraintsFINANCING

SOURCESFINANCING OF

SPORTS IN KENYA (KBF)

INTERNAL SOURCESLeague fees,Clinic fees,Affiliation fees,Tournament fees,Registration of players,Investment in projects

MANAGEMENT EFFECTIVENESSFinancing mix decision,Financial procedures and systems,Planning and budgeting,MarketingFacility endowment,Player performance standards

financing sports in Kenya generally and KBF in particular. On the

other hand, content analysis revealed documented sources of

financing, contribution and degree of consistency of each source.

It also helped in determining the solvency or insolvency of KBF.

The study population consisted of KBF management, both national

and provincial affiliates. There were seven operating branches

namely; Nairobi, Nyanza, Central, Rift Valley, Coast, western and

Eastern Provinces (O'were, 2011). The study population was also

drawn from clubs. The clubs were those that were actively

participating in both provincial and national tournaments. This

provided a variety of scenarios in financing of basketball

activities in Kenya. Both the clubs and KBF branches were endowed

differently in terms of requisite factors needed for sound

financing of basketball activities.

The unit of sampling was KBF management and clubs. Key

Informants were picked from Provincial branches and the National

office. Four (4) officials were purposively picked from eleven

national officials. These were key people who were in a position

to provide the relevant information. From seven (7) affiliate

branches comprising eleven (11) officials each; four (4) branches

were purposively picked to provide countrywide representation and

diverse activity levels. Activity level was measured in terms of

number of active teams and events organized in the branches.

Four (4) key officials from each sampled branch were also

purposively sampled providing sixteen (16) respondents.

12

The study adopted a stratified sampling technique owing to

heterogeneity of the study population; that is, consisting of

several clubs and different sponsorship. Stratified sampling

technique improves representativeness of a sample as it puts into

consideration the diversity (sub-population) within the

population (Mugenda and Mugenda, 2003). From twenty five (25)

clubs in the national league, ten (10) clubs were sampled. This

provided adequate representation of registered clubs. The clubs

first were stratified in-terms of their sponsorship, which was

those sponsored by companies, learning institutions, churches and

self. Thus, clubs from companies were ten, from learning

institutions were nine, and from churches and self-sponsored were

six. A proportionate sample was then worked out from each stratum

giving four clubs each from companies and learning institutions,

while two clubs were picked from churches and self sponsored

groups. From each of the ten clubs that participated in the

study, a simple random sampling technique was employed to arrive

at four respondents providing forty (40). Thus, the total number

of respondents in the study was sixty (60).

Both secondary and primary sources of data were used. Secondary

data was drawn from KBF national office. The data comprised of

Financial Reports and Accounts for the period 2007 -2011.

However, by the time of concluding data collection, KBF

management had not put together the reports for 2012. The

secondary data provided information on the sources of finance and

the contribution of each source annually.

13

Primary data was generated from the sampled KBF officials and

clubs. The primary data further addressed sources of financing;

constraints in financing, views on improved financing strategies

and helped clarify issues that were pertinent to this research

but could not be discerned from financial reports. Questionnaires

were also administered to collect data from sampled clubs. The

primary data explored and corroborated information from the

secondary data.

Data from annual reports was subjected to both qualitative and

quantitative content analysis to allow meaningful description of

scores. Descriptive statistics was used to analyze primary data

from the interview guides and questionnaires. The process was

realized by making use of available computer aided software for

the analysis of both quantitative and qualitative data.

Specifically SPSS was used in the coding entry and analysis of

the data to obtain the frequencies, tables and percentages.

Results and Discussion

The study collected data from Financial Reports and

questionnaires on forty (40) club members and sixteen (16) KBF

branch officials and an interview schedule conducted to four (4)

KBF national officials. A response rate of 100% was realized as

the entire sample targeted by the study responded to its research

instruments.

14

Sources of Finance for KBF

On the sources of finance for Kenya Basketball Federation, Table

1 reveals that sponsor companies and the universities provided

the biggest support for the existing basketball clubs. A total of

30% of the respondents acknowledged University and Sponsor

companies as their financiers. These were clubs such as Telkom

Kenya and Co- operative Bank. Further, 10% of the respondents

indicated that players’ own contributions, well wishers, church

and KBF local branch were instrumental in funding their

activities at the club level. These were perhaps respondents from

the self-supporting clubs, which do not have sponsoring groups.

Church based institutions like the Nairobi Pentecostal Church

have clubs which they fund their activities in their youth

programs.

Table 1: Sources of Finance for Clubs

Source Frequency PercentageKBF local branch 4 10Church 4 10Well wishers 4 10University 12 30Players 4 10Sponsor companies 12 30Total 40 100

On the level of financing for the branches Table 2 shows that

12.5% of the respondents mentioned their branches enjoyed very

15

high levels of financing because of affiliation and from

tournaments. For ordinarily high levels of financing, the

respondents indicated that their branches get high levels of

financing from affiliation (50%), well wishers (18.75%) and

tournaments (6.25%). For relatively fair sources of finance,

seven officials (43.75%) mentioned tournaments, four of them

(25%) talked of well wishers, one of them (6.25%) indicated the

national office, and four (25%) reported league fees as a source

of revenue. Sponsorship is one of the key areas that notably

registered three (18.75%) of the population studied having it as

a very low level revenue source, together with league fees that

had nine officials mentioning it as a very low level source of

revenue within the last sixty months preceding this survey. Well-

wishers and tournaments were other low-income generators for the

KBF branches.

Table 2: Level of Financing Experienced By Branches

Source V.

High

High Fair Low V. Low Total

Affiliation

2(12.5)

8 (50) 6(37.5)

16(100)

Tournaments

2(12.5)

1(6.25)

7(43.75)

3(18.75)

3(18.75)

16(100)

Sponsorship

3(18.75)

10(100)

Well 3(18.7 4 (25) 2 7(43.7 1616

wishers 5) (12.5) 5) (100)Nat.Office

1(6.25)

9(56.25)

10(62.5)

Leaguefees

4 (25) 1(6.25)

9(56.25)

14(87.5)

From the Table 3, it can be observed that league/tournament fee

is the most reliable source of income for the KBF branches. This

is because this is the only source that registered some

percentage at the level of very frequently, as 12.5% of the

respondents mentioned it as a very frequent source of revenue.

Besides, 31.25% that mentioned that league fees frequently

enabled them to get revenue, while another nine (9) branch

officials acknowledged it as a source of revenue, but not that

regularly. On the other extreme, Local government was not

considered as a source of funds, and the twelve (12) branch

officials who mentioned it did indicate that it had never

generated any funds for them.

Table 3: Sources of Finance for KBF Branch Offices

V.

Frequently

Frequentl

y

L.

frequentl

y

Not at

all

League/tournament fees

2 (12.5%) 5 (31.25) 9 (56.25)

Gate collections 3 (18.75) 10 (62.5)Local Government 12 (75)Corporatesponsors

3 (18.75) 9 (56.25) 4 (25)

National office 2 (12.5) 3 (18.75) 6 (37.5)*Other sources 11

17

(68.75)* Other sources indicated here were mainly officials and selfhelp initiatives like fundraising.

The most favoured areas, as evident in Table 4, were facility

development and investment in projects, which drew relative

frequencies of 75% in each case. It is imperative to note that

investment in projects is one of the long-term strategies that an

organization would be interested in, in order to develop more

reliable and consistent revenue sources, rather than rely on the

handouts from well wishers. A further 50% of the respondents each

mentioned the need for increased financing to cover technical

development and assistance to clubs; 25% of the respondents

indicated the need for increased funding for administrative

expenses and more tournaments probably to increase the financial

base of the branches. However, it is indicative that these would

not be forms of capital expenditure that would reliably sustain

the operations of the branches. Perhaps the branches would need

to realize that income that is geared towards capital expenses

would be more beneficial for posterity than short-term

developmental goals.

Table 4: Areas Favored For Increased Financing

Activity Area Frequency PercentageAdministrative

expenditure

4 25

More tournaments 4 25Technical 8 50

18

developmentFacility

development

12 75

Assistance to clubs 8 50Investment in

projects

12 75

The table indicated that the area most regularly affected by

insufficient funds is participation in open tournaments. This was

realized to be partly because of the registration fees that would

be required, and the clubs affected were the self-supporting

clubs, which sometimes rely on members’ own contributions. There

were fifteen respondents (37.5%) that recorded this. This was

followed by another fourteen cases of respondents (35%) who

confirmed that their clubs were being affected by insufficient

funds to enable them participate effectively in the national

league. Another eight (20%) responses were recorded from clubs

being subjected to insufficient finances to participate in the

provincial leagues, as eleven (27.5%) cases were obtained from

clubs having problems appearing in calendar events. In the same

breath, there were clubs that did not seem quite adversely

affected by the issue of insufficient funds. These were mainly

19

institutional clubs sponsored by corporate companies as part of

contribution to staff welfare and community development. In

total, there were indeed eight responses (20%) from the clubs

studied that agreed their clubs faced budget deficits very

frequently in their operations. Another fourteen (35%) said their

teams faced such deficits often, while sixteen (40%) indicated

that their clubs faced such deficits less often. Some two did not

indicate whether their teams faced budget difficulties.

Table 5: Club Activities Affected by Insufficient Financing

Areas of participation

Regularly

Irregularly

Rarely Notapplicable

Total

National

league

14

(35)

5

(12.5)

8 (20) 13

(32.5)

40

Provincial

league

8 (20) 5

(12.5)

6 (15) 21

(52.5)

40

Open

tournaments

15

(37.5)

6 (15) 12

(30)

7

(17.5)

40

Calendar

events

11

(27.5)

9

(22.5)

16

(40)

4 (10) 40

Player camps 3

(7.5)

8 (20) 16

(40)

13

(32.5)

40

Table 6 presents the financing sources and the revenue statements

for the period 2008 – 2011 with regards to the sources of20

financing for KBF as League fees, gate ticketing, sponsorship and

other sources. Generally, as shown in the annual contribution,

but for League fees, the other sources were erratic in their

contribution. Apart from 2011, Leagues fees yielded steady

financial income. On average, league fees contributed 30% of the

annual income in the entire period.

Gate ticketing, contributed on average 16% of the annual income

during the period covered. This financial income was generated

from paying fans’ entry fees in order to watch the League matches

played at Nyayo National indoor basketball court. The officials

indicated that gate ticketing fees yielded more during

international matches and during play off for top-flight clubs in

the league. However, ticketing as a source was extremely erratic

ranging from 27% down to 4% in 2008 and 2011 respectively. The

federation was able to meet the running expenses and register

surplus through this source.

Sponsorship contributed an average of 25% of the annual income

during the period. Apart from the year 2011, its annual

contribution was generally low and erratic. This is perhaps

attributable to the cautious nature of corporate sponsors whose

sponsorship would be dependent on whether they are assured of

returns in terms of publicity and increased market share for

their products. Corporate sponsors also consider the prevailing

economic environment, accountability for the money given to the

federation and attractive positive image of the federation.

21

During political uncertainties, sponsorship was difficult to come

by, yielding low returns in financial income. The situation

improved in 2010, more than doubling to 25%, with 2011

registering 41%.

From the interviews with the officials, it further emerged that

other sources of finance included: player transfer fees,

tournament registration fees, donations from well-wishers,

coaching and officiating clinics, licensing of referees and

certificates, fundraising (co-coordinated by the national team

fundraising board and well wishers), and grants from National Oil

Corporation of Kenya (NOCK) which was consistent and reliable

over the years studied. Other corporate sponsors over the years

have are: Safaricom, Coca Cola Nairobi, Nation Media Group, and

Bidco Kenya. However, their sponsorship has been inconsistent,

short- term (based on tournaments), and dependent on the benefits

that they perceived to get. Corporate sponsors were confortable

sponsoring teams. Internal sources of income that were reliable

included: league fees, tournament fees, gate collections, player

transfer fees, and licensing of referees. On gate collections,

the official noted that it could be sustainable, at least for the

federation to break-even were a minimum of 300 spectators to

attend matches. Funding from Government tended to depend on the

participation of national team in continental or international

tournaments like the All- Africa games.

Table 6: KBF Annual Sources of Finance 2008- 2011

22

Year Leaguefees(Kshs)

Ticketing

(Kshs)

Sponsorship

(Kshs)

*Others(Kshs)

Total(Kshs)

2008 680879(33)

557830(27)

498812(24)

33955(16)

2077076 (100)

2009 826795(39)

205135(10)

245130(11)

850534(40)

2127594 (100)

2010 684100(45)

324460(21)

374920(25)

139450(09)

1522930 (100)

2011 631600(24)

90520(04)

1067572(41)

798960(31)

2588652 (100)

2012 - - - - -

Source: KBF Annual Report and Accounts for the period 2008- 2011

The study sought to establish the other sources which could be

used. The findings revealed: NOCK for annual grants and kitting

of the national team; FIBA Africa, for supply of balls, and

training resources like books and videos; KNSC as the bridge

between the organization and government; and, the department of

sports in the ministry of sports for sponsorship of officials to

international conferences. The officials, however, regarded these

sources as insignificant in terms of their overall contributions

to the running of the federation.

Constraints and their Causes in Financing KBF

The study assessed how frequently the KBF faced problems with

financial sourcing in order to determine the constraints faced in

financing KBF. Table 6 shows that 75% of the respondents reported

that their branches, very frequently, had problems getting

sponsors for their activities; regarding the constraints

23

emanating from few revenue sources, 68.8% and 12.5% acknowledged

the constraints being experienced very frequently and frequently

respectively. On the other hand, on poor turn-out for

tournaments, 12.5% indicated that the constraint was very

frequently experienced while according to 56.3%, the constraint

was experienced frequently

Table 7: Frequency of Problems with Sources of Finances for

Branches

Constraints V. F F L.F Rarely N. AGetting sponsors 12

(75%)

0 2(12.5

%)

2(12.5%) 0

Few revenue

sources

11(68.8

%)

2(12.5

%)

1(6.3%

)

0 2(12.5%)

Low tournament

turnout

2

(12.5%)

9(56.3

%)

1(6.3%

)

2(12.5%) 2(12.5%)

Further, in the interview, the branch officials outlined other

constraints they faced in the administration of basketball

activities within their branches. Though they were not directly

linked to financing, they could negatively influence financing:

lack of facilities; low level of technical expertise; tight

academic programmes for academic institutional clubs; management

is voluntary, with little to bank on in terms of incentives; lack

of adequate exposure by both the management officers and the club

players; poor attitude towards the game from members of the

community which preferred football reducing the interest in

24

basketball; little encouragement from the national basketball

office (no clear policy framework within the national office to

capture the operations of the affiliate branches, and help co-

ordinate their activities in order to achieve common and clear

goals vis a vis the development of basketball in the country). Other

officials mentioned lack of youth programmes, to nurture young

talents and foster a sense of smooth transition from old players

to new and young players within teams; and, lack of corporate

sponsors to ensure the provision of significant necessary

support, technically, financially, and in terms of facilities.

The national KBF office, in addition, identified the underlying

constraints to their realization of enough financial resources as

due to: low household interests and hence expenditure in

activities related to basketball; poor publicity of basketball

events; lack of indoor gyms that would make it easy to generate

revenues through ticketing; poor leisure and recreation culture

by most Kenyans probably due low per capita incomes; poor turn

outs by teams for open tournaments; and, erratic league fees

payments especially by self supporting clubs.

Suggestions on the Corporate Strategies to Improve KBF Financing

Scheme

When asked which strategies they had in place to improve the

financial returns from the sources they had indicated, the

officials made the following observations: approaching marketing

firms would enable them reach out to more potential sponsors

25

through the marketing of the federation’s activities; asking

teams, especially sponsored ones to fully pay up participation

fees before being registered for tournaments and the league;

strengthening the established national team fund raising board to

assist the management in addressing the funding of the national

team; and, encouraging many more teams to attend tournaments.

The respondents were required to state the strategies they would

suggest as away of improving financing of basketball activities.

From Table 7, it was realized that 75% of the respondent noted

that the most favoured strategy would be increased investment by

corporate firms; 55%favoured increased government allocations;

52.5% flavoured increasing marketing or commercialization and the

empowerment of clubs towards self-sufficiency; 42.5% favoured

sports lottery; 37.5% favoured the development of a broad based

public financing policy; and, 10.0% favoured the attraction of

more household expenditure. Thus, increased government

involvement in KBF funding would help instill in the people the

sense that there are a lot of stakes in the game, which can draw

even government intervention, hence improve the image of the

game. Internal generation of funds would reduce dependence on

goodwill, and enable clubs draw own budgets based on what they

are sure of raising.

26

Table 8: Corporate Financing Strategies Suggested By Club Members

Financing Strategy Frequenc

y

Percenta

geSports lottery 17 42.5Increased government allocation 22 55Increased investment by corporate firms 30 75Increased marketing/ commercialization 21 52.5Empowering clubs towards selfsufficiency

21 52.5

Attracting more household expenditure 4 10.0Developing broad based public financingpolicy

15 37.5

Conclusions

It was established that basketball in Kenya suffers from

restricted sources of finances. Clubs were largely financed by

universities and sponsor companies with most prominent companies

ones being Telkom Kenya and Co-Operative Bank. The clubs also got

finances, though minimally, from players’ own contributions,

well-wishers, church and KBF local branches. KBF branch offices’

main source of finance was league or tournament fees, followed by

corporate sponsorship then contribution from KBF national office.

Other sources of income have included: player transfer fees,

tournament registration fees, donations from well-wishers,

coaching and officiating clinics, licensing of referees and

certificates, fundraising and grants corporate bodies such as

NOCK, Safaricom, Coca Cola Nairobi, Nation Media Group, and Bidco

27

Kenya, though inconsistent and unreliable. The funds received

were mostly used for facility development, investment in

projects, and assistance to clubs. However, a lot of limitations

were faced when it came to financing open tournaments,

Federation’s calendar events, and national and provincial

leagues.

The constraints faced by KBF in getting finances included:

getting sponsors for their activities, few revenue sources and

low tournament turnout. It is observed that if the turnout could

be at least 300, the Federation could breakeven. Corporate

sponsorship was, at its best, incidental, unpredictable,

unreliable and dependent on a number of externalities beyond the

federation’s control. However, lack of sponsorship for the

Federation could be based on the fact that the latter: either

lacks or has poor facilities; lacks technical expertise

instrumental in establishing sound basketball and lack of

exposure; lacks proper management and accountability of funds

received; poor attitude and culture that does not support

basketball from the public; lack of enough support from the

government; lack of public policy in sports financing; and, poor

marketing skills that does not support corporate interest.

Recommendations

Suggestions were put forward that KBF’s management need to

redesign its policies in sourcing for corporate sponsorship. The

management had no structured strategy of identifying and

28

sustaining sponsors such as legally binding contracts,

accommodation of sponsors’ business interest. They, thus, need

proper business plans where sponsors are assured of getting

proper marketing and high degree of accountability of the funds

they give. There is need for KBF to allocate more funds to

Basketball development, talent management and programmed

activities. Maturity of basketball would attract sponsorship and

talent. It also needs to allocate funds to investment and

development such as indoor gym facilities or enclosed playgrounds

where fans could be charged as they enter to watch the matches.

Additionally, there is need to professionalize basketball and

ownership or management of clubs, and management of the

Federation. The government needs to be supportive of basketball

through allocating more funds to the Federation. The Federation

also needs to create public awareness on basketball, develop and

nurture more grassroots clubs so that the public could attend

tournaments. It could, further, shop for more local corporate

entities and private citizens’ sponsorships. Finally, the

federation needs to do more by recognizing, rewarding, and

motivating clubs participating in the League.

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