On April 20, Kenya successfully hosted the fifth edition of the Absa Kip Keino Classic, the only Continental Tour Gold Series track and field meeting sactioned by World Athletics on African soil.
Absa Bank Kenya continues to invest heavily in Kenya’s sports sector ranging from athletics, football (through its sponsorship of the English Premier League), and golf in the last decade.
On the same breath, the bank renewed its title sponsorship to the 2024 Absa Kip Keino Classic.
From this support, the bank has played a crucial part in catapulting our athletes to form part of amazing stories of athletics success in Kenya and Africa.
Nation Media Group’s Lead Editor for Sports, Elias Makori , had a chat with Abdi Mohamed, Absa Bank Kenya’s Managing Director, on the bank’s continued support to Kenya’s sporting sector and the role that corporates can play in elevating local sporting through sponsorship.
In a few days you mark a year in office, it’s noteworthy that you have maintained Absa’s presence in sports sponsorships despite the tough economic times. Why is this?
The potential in Kenya’s sports spectrum is massive, and maintaining this commitment to sports sponsorships despite current economic times has been a strategic choice.
We believe in the power of sports to inspire and unite communities, which is more crucial than ever during challenging periods.
From a broader perspective and as a purpose driven organisation, we are investing in the physical and emotional health of our society, which in turn fosters a healthier, more vibrant economic environment. This long-term vision underlines our dedication not just to financial success, but to creating genuine societal value.
At Absa, we have a long-term commitment to nurture sports in the country because of the important role it plays in our society.
Our investment spans athletics, football (through our sponsorship to the English Premier League) and golf. To this end, we estimate to have invested over KES 1.3 billion in the Kenyan sports sector in the last decade.
As you’re aware, Absa has a rich history with golf which goes back more than a decade.
We then paused to reflect on what better sport sector we could bring the kind of transformation we have witnessed with assets like the Magical Kenya Open and we settled on athletics.
We therefore made a strategic decision to invest in Athletics as our flagship brand property because nothing says Kenya louder than athletics.
Athletics, more than any sport, has played the patriotic duty of putting Kenya on the global map and we look forward to bringing the lessons we have learnt from our involvement with Golf to the exciting world of athletics.
We believe that athletics reflects the story of the great human spirit and that is why we are joining different stakeholders such as Athletics Kenya and the Ministry of Sports on this journey of nurturing strong teams that will represent the country and show the world once again why Kenya is the home of great champions.
Recently, President William Ruto implored organisers of key sports events, like the Safari Rally, to wean off Exchequer support. Do you see corporates playing a bigger role in this space or should we sustain public-private partnerships?
Sports play a transformative role in fostering community and national pride, and their contribution to the economy is undeniable.
We are committed to enhancing this impact by acting as a catalyst, aiming to significantly elevate the economic contributions of sports across the nation. Without a doubt, we see this as a pivotal moment for corporates to step up and play a larger role in this space.
By increasing corporate sponsorship, we not only ensure the longevity and success of these beloved national events but also as a potent vehicle for fostering positive youth development, driving employability, and overall wellbeing of the society.
This doesn't diminish the value of public-private partnerships. Such collaborations have been instrumental in scaling events to international standards and should evolve.
Our vision is to foster a balanced approach where enhanced corporate involvement coexists with strategic public support, ensuring these events not only continue to thrive but also contribute significantly to our national economy and social fabric.
As has been the case with Magical Kenya Open and the Absa Kip Keino Classic, well organised sports events create an influx of spectators and visitors who in turn contribute to increased business activity among local enterprises that participate in supplying goods and services during sports events, thereby creating multiplier effects that enhance economic opportunities for all.
As more corporate sponsorships flow into local sporting events, there is potential for more opportunities to emerge that will create future growth frontiers for its population.
In Kenya, one need only look to athletics to understand the value of sport to the country and East Africa as a whole. Our athletic prowess has thrust our country into the spotlight for a variety of reasons.
What sort of incentives would you like the government to employ to make the sponsorship space more attractive to corporates?
Without a doubt, the private sector's contributions have inspired progressive policy formulations such as a first-time tax rebate for companies that support the sports sector.
This has rekindled corporate interest in the sector, which should increase sponsorships and partnerships for the country's sporting disciplines going forward.
To fully develop Kenya's sports industry, sports administrators and corporate players must adopt a paradigm shift and work to establishing win-win partnerships that increase sports' contribution to national development.
This is especially true given that well-coordinated partnerships have the potential to bring together resources, expertise, and much-needed funding that cannot be obtained when working alone.
Governments and the private sector would benefit from working together to improve a country’s sports standards consciously and continuously.
We believe that working together, under the ministry leadership, we can continue amplifying our profile not just as a country with great athletic talent, but one that also has the capacity, goodwill, and resources to host global competitions with world-class standards.
Your bank’s sponsorship of the annual Kenya Open European Tour Golf Championship stands out. However, perennially, Kenyan players either fail to make the cut or perform below par. Are you considering facilitating a long-term programme to train and expose Kenyan players to make them more competitive?
As Absa Bank, we earnestly believe in the possibilities that Kenya and Kenyans have.
Our belief in the inspiring potential of our players and the positive ripple effect their success has on placing Kenya prominently on the global map.
The performances of Kenyan players at the tournament, while historically varied, underscore the vast untapped potential that, if harnessed, could significantly elevate their competitive stature internationally.
Our commitment extends beyond mere sponsorship; it is about making a strategic investment in the sporting fabric of our nation, which promises substantial returns not just in financial terms but in cultural and social enrichment as well.
It is for this same reason that we have continuously and deliberately partnered with several Kenyan Golf Pros and athletes who have gone ahead to post remarkable performance while competing with some of the world’s best.
Our interaction with some of these players has helped us appreciate in a big way their stories of tenacity, hard work and the resilience that goes into the preparation required to compete in championships.
Their success has a catalytic effect, inspiring younger generations and attracting sports enthusiasts and tourists from around the world. This, in turn, stimulates local economies and reinforces the position of sports as a pivotal element of our national identity and economic development.
Currently, the government is constructing and renovating key stadiums. Would you be keen on considering taking up naming rights for one or some of these facilities to help in their maintenance?
We are committed to investing in sports in general. We constantly review our assets based on our business priorities and the needs of society.
Currently we are actively promoting wellness and community engagement through the Absa Sports Club. The club serves as a dynamic venue where numerous tournaments are hosted, supporting not only the physical well-being of participants but also fostering a sense of community.
This focus aligns with our broader commitment to holistic wellness initiatives and community development, allowing us to support these values in practical, impactful ways.
We believe that maintaining and enhancing the facilities and activities at the club will continue to offer significant benefits to our community and stakeholders.
We remain open to reevaluating our sponsorship strategies in the future to best serve the interests of both our community and business objectives.
Kenyan athletes continue to dominate global distance running and earn a tidy sum especially from victories in big city marathons and distance running competitions. But quite a number make tragic financial decisions on their hard-earned cash. Would Absa consider employing financial literacy programmes and offering investment advice for our athletes?
We believe by offering comprehensive financial education, they can empower their customers and the wider public with the indispensable knowledge and skills necessary to secure and fortify their financial well-being, thereby fostering a more financially resilient society.
Wealth management is crucial for athletes because they typically earn a large amount of money in a relatively short period, which they must manage effectively to secure their financial future beyond their playing careers.
Given that May is Financial Literacy Month, it's the opportune time to highlight the importance of these initiatives.
At Absa, we are committed to working with our athletes, to help them to make informed decisions about their finances and manage their investments. Like many of us, professional athletes also face unique challenges when managing their finances, such as increased risk of injury.
As a financial institution, and we understand their financial needs and behaviour are not conventional to traditional employed clientele our industry sector has been serving for a long time.
As we have done in the past, we continue to provide bespoke solutions for our Kenyan athletes such as providing winners of the Absa Kip Keino Classic with investment seed fund to start their investment journey with Absa.
