KRU frets over defaulted rugby World Cup loan

The Kenya Rugby Union (KRU) is at the center of a legal storm after failing to repay a $300,000 (approx. Ksh 38.7 million) loan obtained from Paris-based Corporation Careitas in 2022. The loan was intended to support the Kenya Simbas’ participation in the Rugby World Cup qualifiers held in France that July.

According to court documents filed at the Milimani Commercial Courts, Careitas, represented by Brian Asin & Co. Advocates, entered into a loan agreement with KRU on March 22, 2022.

The facility was structured as a loan participation note with a 10% annual coupon on a reducing balance and a three-year maturity period, which would have culminated in 2025. However, KRU defaulted on its first scheduled repayment.

In addition to interest, Careitas was entitled to 11.25% profit participation from revenue-generating KRU properties, including Safari 7s, Elgon Cup, Super Series, Test Matches, and the Enterprise Cup.

Failure to comply with the repayment schedule and settlement terms has forced Careitas to call in the full facility amount, which now stands at USD 354,411, inclusive of accrued interest.

Notably, the financing arrangement was organized by Andrea Silva, an Italian sports business consultant based in East Africa. Questions of conflict of interest have also emerged.

During a recent Special General Meeting, former KRU chairman Sasha Mutai accused Hon. Secretary Ray Olendo of potential misconduct. Olendo is a partner at Olendo Orare Samba Advocates LLP—where Brian Asin, Careitas’ legal representative, is also a partner.

As tensions rise and legal proceedings intensify, the future of KRU's financial stability and governance remains under sharp scrutiny.