Kenya's stadium development program has been hit by massive budget overruns, undisclosed pending bills, and rampant use of direct procurement, raising a red flag on possible corruption and mismanagement, according to a new probe.
The National Assembly Public Investment Committee has unearthed a trend where contracts worth hundreds of millions for the construction and renovation of key sports facilities were, among other anomalies, awarded without competitive bidding.
This, alongside other cases such as millions in undisclosed pending bills owed to landlords, has now put the State department for sports on the spot.
For instance, the Auditor General flagged the department's awarding of three contracts worth Sh1.19 billion for the construction of the Jamhuri Posta Sports Ground in Nairobi.
Two of the contracts, amounting to Sh581.3 million, were issued through direct procurement, in violation of Section 103 of the Public Procurement and Asset Disposal Act, 2015.
“The use of the direct procurement method did not meet the provisions of Section 103(2) of the Public Procurement and Asset Disposal Act, 2015. Further, the cost of the two (2) contracts for additional works exceeded the engineer's valuations of Sh150,000,000 and Sh374,273,915,” said the Auditor General Nancy Gathungu.
The additional works exceeded the engineer’s estimates by KSh57 million. Physical inspection in September 2023 revealed that floodlights at the facility had not yet been connected to electricity, and no explanation was offered for the delay.
“This resulted in an increase of Sh25,000,000 and Sh32,087,272, respectively. This was contrary to the Public Procurement and Asset Disposal Regulations, 2020, which require an accounting officer to satisfy that the offer is at the prevailing real market price before use of direct procurement method.”
The committee chair, Tindi Mwale, sought to know from the ministry how floating the tender for different firms to bid would have affected standardisation of the projects.
However, Principal Secretary in the state department for sports Elijah Mwangi defended the direct contracting, citing standardisation and the need for compatibility with existing infrastructure.
“The actual cost for the contracts was determined after physical field visits by an evaluation committee that was made up of technical officers who determined the magnitude and quantities of the additional work that was to be undertaken by the contractor,” said PS Mwangi.
He further blamed the increase in VAT from 14 per cent to 16 per cent, among the factors that overshot the budget.
In Kirinyaga County, the construction of Wang’uru Stadium by Vee Vee Enterprises Limited saw costs escalate from the original contract of Sh310.5 million to Sh387 million—a 25 per cent increase.
A second contract worth Sh309.4 million for additional works was also awarded without competitive bidding.
The probe by the committee shows that the variation in procurement processes was not supported by necessary approvals.
While the State Department justified the direct procurement due to urgency in completing the stadium ahead of Mashujaa Day celebrations, the committee raised concerns about non-compliance with procurement laws.
In Kiambu County, the State Department awarded contracts totaling Sh1.09 billion for the construction of Kirigiti Stadium.
The initial contract was increased by Sh148.7 million, also representing a 25 per cent variation, again without documented approvals.
A second contract for additional works was issued through direct procurement, with the department arguing that it was necessary to retain the contractor already on site. As of September 2023, Phase 1 had been completed, while Phase 2 remained unfinished.
In Kisumu, the Jomo Kenyatta Show Ground Stadium was completed at a cost of Sh350 million in 2020 but remains in limbo.
The contractor has yet to officially hand over the stadium to the State Department, while the county government of Kisumu has taken de facto possession. A recent inspection revealed signs of vandalism and missing metal drainage covers.
The committee flagged the lack of clarity regarding ownership and maintenance responsibilities, warning that the government may have incurred significant expenditure without gaining full control of the facility.
Chepalungu MP Victor Koech questioned the PS why all the project budgets were inflated by the maximum constitutional provision of 25 per cent.
“If you want to suspect something is happening, you look at the figures, in this case, the cost increased by 24.99 percent for nearly all the projects,” asked Koech.
Aldai Constituency Member of Parliament Marianne Kitany questions the PS whether the country doesn’t have qualified engineers to do proper scoping of work.
“If you give an excuse that there is a celebration coming and there is something that should be done, it creates a lot of suspicions,” said Kitany.
The probe also uncovered KSh84.1 million in undisclosed rent arrears for office spaces leased by the State Department from four landlords. These arrears, not reported as pending bills in the financial statements, violate lease agreements and risk disrupting departmental operations.
The department acknowledged the oversight, citing delays in invoice submission and lack of budgetary provisions. It has since forwarded the bills to the pending bills verification committee and is engaging the National Treasury for funding support.
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