FKF promises answers over Sh42 million CHAN insurance deal

Football Kenya Federation (FKF) President Hussein Mohammed/COURTERSY

The Football Kenya Federation (FKF) has moved to calm growing public concern over a controversial Sh42 million insurance arrangement linked to preparations for the African Nations Championship (CHAN).

FKF has promised to issue a detailed explanation amid mounting scrutiny.

In a statement, FKF acknowledged the allegations circulating in the public domain and the concerns raised by stakeholders regarding the procurement process.

“FKF is aware of the allegations currently circulating in the public domain and notes the concern they have raised among stakeholders,” the federation said. “The FKF President will address the matter shortly and provide a clear and comprehensive statement on the issues raised.”

The federation added that it remains committed to upholding transparency and accountability in its operations.

“FKF remains committed to transparency, accountability, and the continued development of football, and will take the necessary steps to protect the integrity of the federation,” the statement read.

The controversy centres on a high-value insurance contract reportedly awarded at a cost of Sh42,406,815, despite the existence of lower bids—including one of about Sh29 million—from established insurance firms.

The deal has drawn attention due to the apparent selection of a relatively new company over more experienced and compliant providers.

According to reports now under review by the Ethics and Anti-Corruption Commission (EACC), the payment was processed on August 4, 2025, raising questions about procurement procedures, regulatory compliance, and the potential loss of public funds.

Further records indicate that the company awarded the contract had been registered only weeks earlier, on June 25, 2025, and was not licensed by the Insurance Regulatory Authority (IRA) to operate as an insurance broker in that year.

Under Kenyan law, operating without such authorisation constitutes a criminal offence.

The insurance arrangement was part of requirements set by the Confederation of African Football (CAF), which mandated host nations Kenya, Uganda, and Tanzania to secure a civil liability cover of $30 million (Sh3.8 billion) as a condition for hosting the CHAN tournament.

Investigators are now seeking to establish why a higher-priced and reportedly unlicensed intermediary was selected, despite the availability of compliant and more cost-effective options from established insurers.

Questions have also been raised about whether procurement rules were followed and whether due diligence was conducted before the award.

The issue has sparked debate within the sports sector, with stakeholders warning that such controversies could undermine confidence in Kenya’s ability to manage major continental tournaments.

The developments come at a critical time for Kenyan football, as the country prepares to co-host the 2027 Africa Cup of Nations (AFCON) alongside its regional partners.