Sponsorship Agreement (Kenya)
SPONSORSHIP AGREEMENT
Law of Contract Act Cap. 23 | Income Tax Act Cap. 470 | Sports Act No. 25 of 2013
THIS SPONSORSHIP AGREEMENT is made on [Agreement Date]
BETWEEN:
(1) [Sponsor Name] (BRS Registration Number: [Sponsor BRS Number]; KRA PIN: [Sponsor KRA PIN]), having its registered office at [Sponsor Address] (the "Sponsor"); and
(2) [Sponsored Party Name] (KRA PIN: [Sponsored Party KRA PIN]), having its registered office or address at [Sponsored Party Address] (the "Sponsored Party").
The Sponsor and the Sponsored Party are hereinafter referred to individually as a "Party" and collectively as the "Parties".
BACKGROUND
A. The Sponsored Party organises, manages, or operates: [Sponsored Property Name] — [Sponsored Property Description] (the "Sponsored Property").
B. The Sponsor wishes to provide financial support and/or in-kind contributions in exchange for the marketing, branding, and commercial rights set out in this Agreement, and the Sponsored Party agrees to provide such rights on the terms set out herein.
C. This Agreement is entered into under and shall be governed by the Law of Contract Act Cap. 23 and all other applicable laws of Kenya.
1. SPONSORED PROPERTY
1.1 The Sponsored Property is: [Sponsored Property Name].
1.2 Description: [Sponsored Property Description].
1.3 Event date or programme period: [Event Date].
1.4 Venue or location: [Event Venue].
1.5 Sponsorship category: [Sponsorship Category].
1.6 Exclusivity category: [Exclusivity Category]. For the duration of this Agreement, the Sponsored Party shall not accept sponsorship from any entity operating within the Sponsor's exclusivity category without the Sponsor's prior written consent.
2. SPONSOR RIGHTS AND DELIVERABLES
2.1 Naming rights: [Naming Rights].
2.2 Logo placement and brand visibility: [Logo Placement]. All placements shall comply with the Sponsor's brand guidelines as notified to the Sponsored Party in writing.
2.3 Hospitality entitlements: [Hospitality Entitlements].
2.4 Brand activation rights: [Activation Rights]. Activation content and activities shall comply with all applicable county government licences, the Communications Authority of Kenya (CA) guidelines under the Kenya Information and Communications Act Cap. 411A, and the requirements of the venue operator.
2.5 The Sponsored Party warrants that it has the authority to grant the Sponsor rights set out in Clause 2 and that the exercise of those rights will not infringe the rights of any third party.
3. EXCLUSIVITY AND AMBUSH MARKETING
3.1 The Sponsored Party shall take all reasonable steps to prevent ambush marketing — any attempt by a non-sponsor to associate its brand with the Sponsored Property without the Sponsor's authorisation — including: preventing non-sponsor signage within the event perimeter; refusing media accreditation to non-sponsor brands; enforcing ticket and accreditation terms against non-sponsors; and policing social media for false association.
3.2 The Sponsored Party's legal tools to combat ambush marketing under Kenyan law include proceedings under the Trade Marks Act Cap. 506 (administered by the Kenya Industrial Property Institute — KIPI), the Copyright Act Cap. 130 (administered by the Kenya Copyright Board — KCB), and common law passing-off claims.
3.3 The Sponsor's exclusive category is defined in Clause 1.6. An ambiguous or overly broad category definition shall be interpreted narrowly against the Sponsor.
4. SPONSORSHIP FEE AND PAYMENT
4.1 Total sponsorship fee: [Sponsorship Fee].
4.2 Payment schedule: [Payment Schedule]. Payment shall be made by electronic funds transfer to the Sponsored Party's nominated Kenyan bank account, details of which shall be provided in writing before the first payment date.
4.3 VAT: [VAT Treatment]. Where the Sponsored Party is VAT-registered under the Value Added Tax Act No. 35 of 2013, a valid KRA-compliant tax invoice shall be issued to the Sponsor for each payment, showing the taxable amount and VAT at 16%.
4.4 Withholding tax: [Withholding Tax]. Where the Sponsored Party is non-resident, the Sponsor shall deduct and remit withholding tax at 20% under Section 35 of the Income Tax Act Cap. 470 (or such reduced rate as may apply under an applicable Double Taxation Agreement) and provide the Sponsored Party with a withholding tax certificate.
4.5 For the corporate Sponsor, sponsorship expenditure may be deductible as a marketing or advertising expense under Section 15(2) of the Income Tax Act Cap. 470, provided the expenditure is incurred wholly and exclusively in the production of taxable income. Confirmation of deductibility should be sought from the Kenya Revenue Authority (KRA).
5. INTELLECTUAL PROPERTY
5.1 The Sponsored Party grants the Sponsor a limited, non-transferable licence to use the Sponsored Property's name, logo, and official imagery for the following purposes and scope: [IP Licence Scope], for the duration of this Agreement only.
5.2 The Sponsor grants the Sponsored Party a limited licence to use the Sponsor's trade marks and brand materials solely for the purpose of fulfilling the Sponsor's rights under Clause 2, as approved in advance in writing by the Sponsor.
5.3 Neither Party acquires ownership of the other Party's intellectual property. All trade marks and copyright remain vested in the originating Party, subject to the licences granted herein under the Trade Marks Act Cap. 506 and the Copyright Act Cap. 130.
5.4 On termination of this Agreement, each Party shall immediately cease all use of the other Party's intellectual property and shall remove or destroy all materials incorporating the other Party's IP within 14 days of termination.
6. TERM, TERMINATION, AND MORALITY CLAUSE
6.1 This Agreement commences on [Agreement Date] and continues for: [Agreement Term].
6.2 Either Party may terminate this Agreement for convenience by giving [Notice Period] written notice to the other Party.
6.3 Either Party may terminate this Agreement immediately on written notice if the other Party commits a material breach and fails to remedy that breach within 14 days of written notice requiring remedy.
6.4 The Sponsor may terminate this Agreement immediately without liability if the Sponsored Party engages in conduct that would materially damage the Sponsor's brand reputation, including: [Morality Clause Triggers]. Under the Law of Contract Act Cap. 23, this morality clause is an express contractual term and is enforceable as such.
6.5 Force majeure: If either Party is prevented from performing its obligations by an event beyond its reasonable control — including natural disaster, government-ordered event ban, public health emergency under the Public Health Act Cap. 242, or civil unrest — that Party shall notify the other within 7 days and the Parties shall negotiate in good faith regarding rescheduling, credit of payments, or proportionate termination.
6.6 On termination by either Party: (a) all licences granted under Clause 5 terminate immediately; (b) amounts paid before termination are non-refundable unless the Sponsor terminates due to Sponsored Party breach; (c) amounts not yet paid are not due unless the Sponsored Party has delivered the corresponding deliverables.
7. GENERAL PROVISIONS
7.1 Governing law: This Agreement is governed by and shall be construed in accordance with the laws of Kenya.
7.2 Dispute resolution: [Dispute Resolution]. Jurisdiction: [Governing County].
7.3 Entire agreement: This Agreement constitutes the entire agreement between the Parties regarding the Sponsored Property and supersedes all prior negotiations, representations, and understandings.
7.4 Amendments: No amendment to this Agreement shall be valid unless made in writing and signed by both Parties.
7.5 Assignment: Neither Party may assign its rights or obligations under this Agreement without the prior written consent of the other Party.
IN WITNESS WHEREOF, the Parties have signed this Agreement on the date first written above.
Authorised Signatory (Sponsor)
________________
Signature
Authorised Signatory (Sponsored Party)
________________
Signature
Witness
________________
Signature
What Is a Sponsorship Agreement (Kenya)?
A Sponsorship Agreement in Kenya sets out the rights, duties and consideration binding the parties to it.
The Law of Contract Act Cap. 23 governs the formation, performance, and enforcement of Sponsorship Agreements in Kenya. Section 2 of Cap. 23 requires offer, acceptance, lawful consideration, capacity of parties, and legality of purpose for a binding contract. The consideration in a sponsorship arrangement flows in both directions: the sponsor provides financial or in-kind support, and the sponsored party provides marketing exposure, naming rights, media coverage, and other agreed benefits. The courts of Kenya — particularly the High Court Commercial Division and the Court of Appeal — have consistently treated Sponsorship Agreements as enforceable commercial contracts under Cap. 23, awarding damages for breach of exclusivity clauses, failure to deliver agreed brand exposure, and non-payment of sponsorship fees.
The Sports Act No. 25 of 2013, administered by the State Department for Sports and the Sports, Arts and Social Development Fund (SASDF), is relevant to sports-related sponsorships. The Act establishes the Sports Kenya Board — the successor to the Kenya Sports Council — and provides a framework for the registration and governance of national sports organisations, including the Kenya Football Federation (FKF), Athletics Kenya (AK), and the Kenya Rugby Union (KRU). Sponsorship agreements involving national sports federations or teams must be consistent with the relevant federation's constitution, competition regulations, and sponsorship policies, as well as the oversight framework of the Sports Act.
The Income Tax Act Cap. 470, administered by the Kenya Revenue Authority (KRA), determines the tax treatment of sponsorship fees in Kenya. For a corporate sponsor, sponsorship expenditure may be deductible as a marketing or advertising expense under Section 15(2) of the Income Tax Act — deductible in the year of payment if the expenditure is incurred wholly and exclusively in the production of income. Sponsorship payments made to non-resident sponsored parties attract withholding tax under Cap. 470. The Value Added Tax Act No. 35 of 2013 applies to sponsorship arrangements where the sponsored party is VAT-registered and provides taxable supplies — the provision of advertising and marketing services by the sponsored party is taxable at 16% VAT.
The Kenya Copyright Board (KCB), established under the Copyright Act Cap. 130, is relevant where the Sponsorship Agreement involves the use of the sponsored party's intellectual property — logos, music, performances, video content, or brand identity — in the sponsor's marketing campaigns. The agreement must expressly address the licence to use the sponsored party's IP, the permitted uses, and the duration of the licence. The trade mark registration regime administered by the Kenya Industrial Property Institute (KIPI) under the Trade Marks Act Cap. 506 is also relevant where the agreement involves naming rights or branded partnerships.
The Communications Authority of Kenya (CA), under the Kenya Information and Communications Act Cap. 411A and the Kenya Communications (Broadcasting) Regulations 2009, regulates sponsored broadcasting content. Broadcast sponsorship must be disclosed to viewers in compliance with the CA's broadcast sponsorship identification requirements, and political sponsorship in broadcasting is subject to specific CA restrictions during election periods under the Elections Act No. 24 of 2011 and IEBC regulations.
A Sponsorship Agreement must be clearly distinguished from a donation or grant (where no commercial benefit is expected by the donor), an advertising agreement (where the sponsor directly controls the content and placement of the advertising), an endorsement agreement (where an individual personally endorses a product), and a partnership or joint venture agreement (which creates a shared business relationship). Each creates a different tax, IP, and regulatory position under Kenyan law.
When Do You Need a Sponsorship Agreement (Kenya)?
A Sponsorship Agreement in Kenya is required in a wide range of commercial, sporting, cultural, and social contexts.
A Sponsorship Agreement is needed when a corporate sponsor finances a Kenyan football club, athletics team, or sporting event in exchange for branding rights, jersey logos, pitch-side advertising, and media exposure. The Kenya Football Federation (FKF), Athletics Kenya (AK), and other national sports federations registered under the Sports Act No. 25 of 2013 require member clubs and federations to document sponsorship arrangements in written agreements.
A Sponsorship Agreement is required when a company sponsors a music festival, cultural event, fashion show, or arts exhibition in Nairobi or other Kenyan cities. Without a written agreement, the sponsor has no enforceable right to the promised branding, hospitality, or exclusivity, and the event organiser has no documented obligation to deliver agreed benefits.
A Sponsorship Agreement is needed when an educational institution or scholarship programme receives corporate funding in exchange for naming rights — for example, a scholarship fund bearing the sponsor's name — and both parties need to document the terms, duration, and conditions of the funding arrangement.
A Sponsorship Agreement is required when a company provides financial support to a broadcaster, podcast, or digital content creator in Kenya in exchange for on-air or online brand mentions, pre-roll advertising, sponsored segments, or product placements. The Communications Authority of Kenya (CA) requires broadcast sponsorship to be identified to the audience, and a written agreement documenting the scope of the sponsorship is essential for CA compliance.
A Sponsorship Agreement is needed when a foreign brand wishes to sponsor a Kenyan event or sports team, as the cross-border arrangement triggers withholding tax obligations under the Income Tax Act Cap. 470 and may require Kenya Revenue Authority (KRA) guidance on the applicable double taxation agreement.
A Sponsorship Agreement is required when a government agency, county government, or public body sponsors a private event or programme, as the Public Finance Management Act No. 18 of 2012 and the Public Procurement and Asset Disposal Act No. 33 of 2015 impose transparency and accountability requirements on the use of public funds for sponsorship purposes.
What to Include in Your Sponsorship Agreement (Kenya)
A valid and commercially effective Sponsorship Agreement in Kenya under the Law of Contract Act Cap. 23 must include the following essential elements.
Parties: Full legal names and registration details of the sponsor and the sponsored party, including their Business Registration Service (BRS) registration numbers, KRA PINs, registered addresses, and — for natural persons — national identity card numbers. Both parties must have full legal capacity to contract under Section 11 of the Law of Contract Act Cap. 23.
Description of the Sponsored Property: A precise description of the event, team, programme, broadcast, individual, or initiative being sponsored — including the name, dates, venue, expected attendance or audience reach, and the governing body or organiser. For sports sponsorships involving national teams or federations registered under the Sports Act No. 25 of 2013, the federation's approval of the sponsorship arrangement should be confirmed.
Sponsor Rights and Deliverables: A detailed schedule of the marketing and commercial benefits to be provided to the sponsor in exchange for the sponsorship fee. These typically include: naming rights (title sponsorship, presenting sponsorship, or category sponsorship); logo placement and brand visibility specifications (jersey, pitch-side boards, event signage, banners, and backdrops) with minimum size and placement requirements; media mentions and broadcast exposure guarantees; digital and social media mentions; hospitality entitlements (VIP tickets, corporate boxes, hospitality packages); product sampling and activation rights; right to use event IP in the sponsor's own marketing materials; and exclusivity within the sponsor's product or service category.
Exclusivity: Whether the sponsorship is exclusive (the sponsored party will not accept other sponsors in the same product or service category for the duration of the agreement) or non-exclusive. Exclusivity provisions should be carefully defined by category — for example, exclusive in the "financial services" or "telecommunications" category — and should address ambush marketing: steps the sponsored party will take to prevent competitors from associating their brand with the sponsored event or team without authorisation. The Trade Marks Act Cap. 506 and the Copyright Act Cap. 130 provide legal tools to combat ambush marketing.
Sponsorship Fee and Payment: The total sponsorship fee or the value of the in-kind sponsorship, stated in Kenya Shillings (KES) or another agreed currency; the payment schedule (lump sum, instalments, or event-milestone-based payments); the consequences of late payment; and VAT treatment under the Value Added Tax Act No. 35 of 2013. For corporate sponsors, the deductibility of the sponsorship fee as a marketing expense under Section 15(2) of the Income Tax Act Cap. 470 should be confirmed with KRA, and the agreement should address withholding tax obligations for payments to non-resident sponsored parties.
Intellectual Property: Ownership of IP created during the sponsorship period (advertising content, event materials, photographs, videos, and branded assets); the scope and duration of the licence granted to each party to use the other's trade marks, logos, and branding; restrictions on modifications to trade marks; and obligations on termination to cease use of the other party's IP. The agreement must comply with the Copyright Act Cap. 130 and the Trade Marks Act Cap. 506, both administered with oversight from the Kenya Copyright Board (KCB) and the Kenya Industrial Property Institute (KIPI).
Representations and Warranties: The sponsor's warranty that it has the right to use its trade marks and brand materials in the sponsorship; the sponsored party's warranty that the event or programme will take place as described, that it has the authority to grant the sponsor rights specified, and that the sponsorship will not violate any rights of third parties or any applicable law.
Activation Rights: Whether the sponsor has the right to conduct on-site brand activations (product demonstrations, sampling campaigns, branded experiences) at the sponsored event, and any restrictions on activation content, location, or timing imposed by the venue operator, county government licensing authorities, or the event organiser.
Termination: Grounds for termination including material breach with a cure period, insolvency, reputational harm (if the sponsored party's conduct significantly damages the sponsor's brand), cancellation of the sponsored event (force majeure provisions), and termination for convenience with an agreed notice period. Sponsors typically include a morality clause — sometimes called a conduct clause — allowing the sponsor to terminate if the sponsored party's public conduct, statements, or actions are incompatible with the sponsor's brand values.
Dispute Resolution and Governing Law: Kenyan law as the governing law, with disputes resolved by mediation or arbitration under the Nairobi Centre for International Arbitration (NCIA) Rules 2015, or by the High Court of Kenya under the Civil Procedure Act Cap. 21.
Forms-legal.com provides this Kenya Sponsorship Agreement template as a practical starting point for commercial sponsorship arrangements. Complex multi-year sponsorships, international sponsorship transactions, and broadcast sponsorship agreements should be reviewed by an advocate admitted to the Roll of Advocates of the Law Society of Kenya (LSK) with commercial and IP law expertise.
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howpublished = {\url{https://forms-legal.com/kenya/business/contracts/sponsorship-agreement-kenya}},
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Frequently Asked Questions
Yes — a Sponsorship Agreement is a fully enforceable commercial contract under the Law of Contract Act Cap. 23 in Kenya, provided it satisfies the requirements of a valid contract: offer, acceptance, lawful consideration, capacity of the parties, and legality of purpose. The consideration in a sponsorship contract flows in both directions — the sponsor provides money, goods, or services, and the sponsored party provides marketing exposure, naming rights, and other commercial benefits. Kenyan courts have consistently upheld sponsorship agreements as binding contracts. Breach of a Sponsorship Agreement — for example, failure by the sponsored party to deliver the agreed branding exposure, or failure by the sponsor to pay the agreed sponsorship fee — is actionable before the High Court of Kenya (Commercial Division) or the Court of Appeal. Remedies available under Cap. 23 and general Kenyan contract law include: damages for the loss suffered as a result of the breach (including the loss of the expected commercial benefit); specific performance (requiring the defaulting party to perform its obligations); and injunctive relief (particularly relevant to prevent a sponsored party from engaging a competing sponsor in breach of an exclusivity clause). Verbal sponsorship agreements are binding under Cap. 23 but extremely difficult to enforce in practice — the Kenyan courts will look for documentary evidence of the agreed terms. A written Sponsorship Agreement is therefore essential for any commercially significant arrangement.
The tax treatment of sponsorship fees in Kenya is governed by the Income Tax Act Cap. 470 and the Value Added Tax Act No. 35 of 2013, administered by the Kenya Revenue Authority (KRA). For the corporate sponsor, sponsorship expenditure is generally deductible as a marketing or advertising expense under Section 15(2) of the Income Tax Act, provided the expenditure is incurred wholly and exclusively in the production of the sponsor's taxable income. The KRA may scrutinise sponsorship arrangements to ensure they constitute genuine commercial expenditure rather than disguised distributions or entertainment expenses (which are not deductible). For VAT, where the sponsored party is VAT-registered and provides advertising, marketing, or promotional services to the sponsor in exchange for the sponsorship fee, those services are taxable at 16% under the Value Added Tax Act No. 35 of 2013. The sponsored party must issue a valid tax invoice to the sponsor, and the sponsor can claim the input VAT to offset its VAT liability. For sponsorship payments to non-resident sponsored parties — for example, a Kenyan sponsor supporting an international event — withholding tax obligations under the Income Tax Act Cap. 470 may apply to the payments made abroad, typically at 20% for non-residents unless reduced by an applicable Double Taxation Agreement (DTA). The Sponsorship Agreement should expressly address which party bears the cost of VAT and withholding tax to avoid disputes about the net sponsorship fee received by the sponsored party.
Ambush marketing occurs when a competitor of the official sponsor associates its brand with a sponsored event, team, or programme without paying for official sponsorship rights — effectively free-riding on the event's marketing value. In Kenya, ambush marketing is a major concern for sponsors of high-profile events such as Nairobi Marathon, Safari Rally, Kenya Sevens rugby, and major music festivals. An ambush marketing clause in a Sponsorship Agreement imposes obligations on the sponsored party to take active steps to protect the sponsor's investment from ambush marketing by competitors. These obligations typically include: preventing non-sponsors from erecting signage or distributing materials within the event perimeter; refusing media accreditation to non-sponsor brands; enforcing ticket terms and conditions prohibiting commercial brand promotion by non-sponsors; and actively policing social media to prevent false association by non-sponsors. The sponsored party's legal tools to combat ambush marketing in Kenya include: trade mark infringement proceedings before the Kenya Industrial Property Institute (KIPI) or the High Court under the Trade Marks Act Cap. 506; copyright infringement proceedings under the Copyright Act Cap. 130 where event materials are misappropriated; misleading advertising complaints to the Advertising Standards Bureau (ASB) under its self-regulatory code; and passing-off claims at common law.
A morality clause (sometimes called a conduct clause or values clause) in a Sponsorship Agreement allows the sponsor to terminate the agreement — typically without liability for a termination fee — if the sponsored party's public behaviour, statements, criminal conduct, or reputational events would materially damage the sponsor's brand or cause public embarrassment. In Kenya, morality clauses are common in sports sponsorships (athletes and teams), entertainment sponsorships (musicians, performers), and influencer agreements. The key elements of an effective morality clause in a Kenya Sponsorship Agreement are: a clear definition of the triggering conduct — for example, conviction of a criminal offence, public statements inconsistent with the sponsor's values, serious breach of anti-doping rules under the Anti-Doping Agency of Kenya (ADAK) regulations and the World Anti-Doping Agency (WADA) Code, or conduct that KFCB (the Kenya Film Classification Board) or the Communications Authority of Kenya (CA) would consider contrary to public decency standards; the notification and process requirements before the sponsor exercises the termination right; whether termination under the morality clause triggers any obligation to repay advances or fees already paid; and the confidentiality obligations of both parties regarding the morality clause termination. Under the Law of Contract Act Cap.
A Sponsorship Agreement in Kenya does not automatically transfer intellectual property ownership from the sponsored party to the sponsor — it creates only a licence to use specified IP for defined purposes and a defined period. The sponsor acquires the rights expressly granted in the agreement, which typically include: a licence to use the event name, logo, and imagery in the sponsor's marketing campaigns and advertising for the duration of the agreement; the right to describe itself as the 'official sponsor', 'title sponsor', or 'presenting sponsor' of the event or team; a licence to use photographs and video footage of the sponsored event or team (subject to the media rights arrangements and any rights held by independent media organisations); and any co-branding rights agreed — for example, the right to produce jointly branded merchandise. The sponsor does not acquire copyright in photographs, video, or content created by the event organiser or media partners without an express copyright assignment under the Copyright Act Cap. 130. The Kenya Copyright Board (KCB) and the trade mark registration regime at the Kenya Industrial Property Institute (KIPI) protect the sponsored party's trade marks and copyright against unauthorised use by the sponsor beyond the licensed scope. The Sponsorship Agreement should specify: the exact IP licensed; the permitted uses (advertising, social media, packaging, point-of-sale materials); geographic scope (Kenya or wider); sublicensing rights; and obligations on termination to cease using the other party's IP within a defined period.
Force majeure clauses in Kenyan Sponsorship Agreements address the consequences of events beyond either party's reasonable control — including natural disasters, government-ordered event bans, public health emergencies (relevant after the COVID-19 pandemic experience of 2020-2022), civil unrest, acts of terrorism, or grid power failures — that prevent the sponsored event from taking place as planned. Under the Law of Contract Act Cap. 23, Kenyan courts recognise the doctrine of frustration — where a supervening event outside either party's control renders performance of the contract radically different from what was agreed or physically impossible, the contract may be frustrated and both parties discharged from future obligations. However, Kenyan courts apply frustration narrowly: mere inconvenience or commercial difficulty does not suffice. A well-drafted force majeure clause in a Sponsorship Agreement should specify: the categories of events that qualify as force majeure; the notification obligations (typically written notice within 3-7 days of the force majeure event); the parties' obligations to mitigate the impact; whether the agreement is suspended (with an agreed longstop date) or terminated automatically if the force majeure continues beyond a defined period; and the consequences for sponsorship fees already paid — whether they are refundable, credited toward a rescheduled event, or retained by the sponsored party in recognition of pre-event preparation costs already incurred.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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