The Office of the Auditor-General has uncovered major financial irregularities in the Talanta Sports City project, raising fresh concerns over accountability in one of Kenya’s flagship infrastructure developments.
In the 2024/25 audit of the Ministry of Defence, Auditor-General Nancy Gathungu revealed that Ksh10.85 billion cannot be properly accounted for in the construction of the 60,000-seater stadium in Nairobi.
According to the report, the project cost rose from the National Treasury-approved Ksh35 billion to Ksh45.85 billion without lawful explanation. The initial Ksh35 billion was to be financed through the Sports and Arts Social Development Fund over six years.
However, on May 26, 2024, the Ministry of Defence signed a two-year contract with a foreign contractor worth Ksh45,848,051,675, resulting in an unsupported price variation of Ksh10.85 billion.
The audit further notes that clearance from then Attorney General Justin Muturi was not obtained before awarding the contract. Under the Public Procurement and Asset Disposal Act, contracts exceeding Ksh5 billion require Attorney General approval and reporting to the Cabinet and National Treasury.
Auditors also flagged irregular procurement procedures. The Ministry of Sports transferred Ksh2.01 billion and procurement responsibility to the Ministry of Defence before the contract was signed. The deal was awarded through direct procurement instead of open competitive tendering.
As of June 1, 2025, the project was 44.54 per cent complete, with 15 months remaining. So far, Ksh2 billion — about 4.5 per cent of the contract sum — has been paid to the contractor.
The report warns that delayed payments could attract interest at three per cent above the Central Bank of Kenya average base lending rate, potentially driving up the final cost.
Talanta Sports City is expected to host matches during the 2027 Africa Cup of Nations, putting pressure on authorities to ensure transparency and value for money.
