Talanta Stadium KSh 10.85 Billion Cost Scandal Exposed Ahead of AFCON 2027

An audit has exposed a KSh 10.85 billion cost discrepancy in the Talanta Stadium project ahead of AFCON 2027.

An audit has revealed that the construction cost for Nairobi's Talanta Sports City has been inflated by a staggering KSh 10.85 billion, according to a new report from Auditor-General Nancy Gathungu.

Ms Gathungu's findings raise serious questions about the significant price discrepancy in the development of the 60,000-seat stadium. The report, as reported by Nation Sport, highlights that the tender award process breached procurement laws.

Furthermore, it notes that the contract was awarded without securing the necessary clearance from the Attorney-General, pointing to major procedural violations in the project's approval.

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Gathungu's report, which reviewed the Ministry of Defence's accounts for the 2024/25 fiscal year, found that while the Treasury had sanctioned Sh35 billion for the project from the Sports and Arts Social Development Fund (SASDF) over six years, the final contract was awarded for Sh45.85 billion. This discrepancy created what the report calls an "unsupported price variation of Sh10.85 billion."

The Ministry of Defence entered into a two-year contract with a foreign contractor on May 26, 2024, for the design, construction, and equipping of the 60,000-seat stadium, valued at Sh45,848,051,675 (US$344,514,966). The venue is a key part of Kenya's preparations to host the 2027 Africa Cup of Nations.

Talanta Stadium Contract Awarded Without Clearance

Crucially, the audit notes that the contract was awarded without prior clearance from the Attorney General, a legal requirement for state contracts exceeding Sh5 billion.

"Clearance from the Attorney General for the award of the contract was not provided for audit," the report states. At the time, Justin Muturi held the office of Attorney General.

The report also criticises the procurement method used. The Ministry of Sports, Culture and Social Services had transferred procuring responsibility, and Sh2.01 billion to the Ministry of Defence before the contract was signed.

The audit states, "The contract was awarded through a direct procurement method which did not meet competitive procurement and direct procurement criteria demanded by the Public Procurement and Asset Disposal Act of 2015."

The law mandates open tendering as the standard method, permitting direct procurement only under specific circumstances like urgent need, national security threats, or when a supplier has exclusive rights.

As of June 1, 2025, progress reports showed the project was 44.54% complete, with cumulative payments to the contractor standing at Sh2 billion, or about 4.5% of the total contract sum.

The audit warns that any late payments could incur interest at 3% above the Central Bank of Kenya's average base lending rate, leading to "additional avoidable project expenditure."

Further concerns were raised about the project's financing model, as full details were not provided for review. The report notes that a new funding structure was implemented to ensure the project's completion, but the lack of transparency calls for a special audit "to determine value for money."

The Talanta Sports City is being financed through a bond on the Nairobi Securities Exchange, serviced by the SASDF, with payments estimated at Sh3.4 billion every six months.

To put the Sh10.85 billion overrun into perspective, the amount could fund 9.5 kilometres of the Rironi–Mau Summit dual carriageway or support the education of millions of Kenyan students for a year.

This revelation comes after Kiharu MP Ndindi Nyoro warned that the bond issued to fund the project could ultimately cost taxpayers up to Sh100 billion.

"If this cannot make us angry as Kenyans, I don’t know what will," Nyoro stated. "Every child born in the next 15 years will have a loan tag for money they have no idea how it was used."

The National Treasury has greenlit Sh35 billion in project funding, which will be disbursed from the Sports and Arts Social Development Fund (SASDF) over six years, according to a recent statement.