Coca Cola, SSMB sign new deal over Nyayo branding rights

Coca Cola and Sports Stadia Management Board, SSMB on Wednesday have re-signed a new deal that will see the soft drink company secure exclusive branding right at the Nyayo national stadium for a period of one year.

This new agreement comes three years after the first deal worth Ksh.120 million was thwarted by the government through Ministry of Sports and Coke through its East Africa Managing Director, Peter Njonjo explaining that the new deals will give the company sole and exclusive branding rights in any event held at Kenya's second biggest sports facility.

The sponsors will not pay additional money to the Ksh 16 million out of the Ksh 24.5 million sponsorship deal already paid to SSMB.

Njonjo clarified that the difference caters the refurbishment cost and advertisement work which had been done at the facility totaling to Ksh 8.9 million.

"We sat down on a round table negotiation with SSMB and after thorough consultations we agreed at a mutually beneficial settlement , we agreed on a one year deal that will see Coke have exclusive branding rights at the stadium," said Njonjo.

According to the new deal, no other direct competitor of Coke will be allowed to stage an event at the stadium but Njonjo was quick to deny the statement adding it will be the sole responsibility of SSMB to look for events that will be staged at the facility.

"We are not coming in as a monopoly to take control of the stadium, what we will do is to make sure that no direct competitor will be allowed in the stadium but it will be the duty of SSMB to market and grant right to anyone who wishes to stage any event at the stadium," added Njonjo.

Apart from the branding right, Coke will also have exclusive right to sell its products at any event staged at the stadium during the duration of the contract which will also see Coke brand the main stadium, aquatic centre, handball and basketball courts.

For SSMB the agreement will open door for them to solicit for partners to further improve in its stadia around the country to achieve the board's mandate to develop and modernize its facilities in line with vision 2030.

In 2009, the two parties entered an agreement which would have seen Coca Cola given both branding and naming right which would have seen the stadium re-named Coca Cola stadium, but the then sports minister, Helen Sambili controversially revoked the deal saying that Nyayo was a national monument and should not handed over to a private entity.

Elvince Joshua

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