AFC Leopards reveal Ksh79 million legal bill threatening to derail financial gains

AFC Leopards have disclosed that a KSh79 million legal claim linked to a long-running kit sponsorship dispute poses a major threat to the club's financial stability despite posting improved financial results for the year ending 31 December, 2025.

During the club's Annual General Meeting (AGM), treasurer Newton Lime revealed that Ingwe generated KSh145.2 million in revenue and recorded a surplus of KSh16.2 million after spending KSh129 million during the financial year.

The club's biggest source of income came from sponsors Betika, Azam TV and the Football Kenya Federation (FKF), which contributed KSh107.4 million.

Ticket and merchandise sales brought in KSh23 million, while membership fees generated KSh8.7 million and donations accounted for KSh5.92 million.

However, Lime warned members that the club is facing a fresh legal liability of KSh79 million arising from an ongoing dispute with former kit partner Nsejjere Sports LLC, a figure that has not been included in the club's current liabilities of KSh125.79 million.

“We have a risk debt somewhere that will cost us. Our lawyers are currently asking us KSh79 million because of the case of Nsejjere,” Lime told members during the AGM.

The dispute stems from a 2011 kit supply agreement between AFC Leopards and Nsejjere Sports LLC.

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The company alleges the club breached the contract after entering into another merchandise deal before the expiry of their seven-year agreement.

According to court filings, Nsejjere Sports sought orders restraining Leopards from using, selling or merchandising replica jerseys, T-shirts and caps not supplied by the company.

The firm further claimed it invested KSh22.5 million in establishing a production line dedicated to manufacturing AFC Leopards merchandise before the relationship broke down.

Nsejjere president Nasser Kilimana has previously maintained that the club requested a renegotiation of the agreement after a new administration took office, saying the new officials had not been briefed on the original contract.

He claimed the company received no response to subsequent correspondence, forcing it to move to court.

Lime admitted the matter remains one of the biggest concerns facing the club's leadership.

“It is a case that is currently disturbing us as a NEC. It is a very serious risk to the club. The case came from a former kit sponsorship deal. It is ongoing at Milimani Law Courts after being moved from the United States. It is a very dangerous animal for us,” he said.

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The claim, in which Nsejjere Sports is seeking general damages for breach of contract and loss of revenue, is expected to be reflected in AFC Leopards' financial statements for the year ending 31 December, 2026.

Club officials fear that, if unsuccessful in court, the legal bill could wipe out much of the financial progress made in reducing debts and place significant strain on the club's future operations.