Kenya Faces Sh14.47 Billion Funding Crisis as AFCON 2027 Stadium Upgrades Stall

Kenya's ability to co-host the 2027 Africa Cup of Nations (AFCON) is under severe threat as the State Department for Sports grapples with a staggering Sh14.47 billion budget shortfall.

This financial crisis has stalled crucial projects, most notably stadium renovations required for the tournament.

The details of the funding gap were revealed in a report on the 2025/26 Supplementary Estimates presented to the National Assembly's Committee on Sports and Culture by Principal Secretary Elijah Mwangi. The report highlights that the AFCON 2027 project alone accounts for Sh11.37 billion of the total deficits.

As part of the ‘East Africa Pamoja Bid’ with Uganda and Tanzania, Kenya is committed to upgrading several venues to meet international standards.

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The primary match venues earmarked are the Moi International Sports Centre (MISC), Kasarani, and the new Talanta Sports City, currently under construction. Kipchoge Keino Stadium in Eldoret is also being developed as an alternative venue.

However, work on these and several designated training facilities has ground to a halt. According to Mwangi's report, the total contract cost for upgrading MISC Kasarani, Nyayo National Stadium, Kipchoge Keino Stadium, Police Sacco Stadium, and Ulinzi Sports Complex is Sh15.11 billion. To date, only Sh3.7 billion has been paid, leaving a massive outstanding balance.

The Principal Secretary explained that the Sports, Arts and Social Development Fund (SASDF), the primary funding source, is overstretched with other significant financial commitments.

These obligations include a Sh6.29 billion annual loan repayment for the Talanta Sports City, Sh6 billion for hosting other sports events, and billions more for constituency sports academies and community grounds.

"Given the above competing obligations, SASDF is unable to meet the financing requirements for critical AFCON 2027 projects," Mwangi stated in the report, as quoted by Nation Sport.

"The total contractual cost of the earmarked stadium projects is Sh15.11 billion, out of which Sh3.74 billion has been paid, leaving an outstanding balance of Sh11.37 billion."

The report also noted that the Ministry is seeking an additional Sh4.82 billion in the supplementary budget, though this amount is separate from the Sh14.47 billion deficit crippling the department's core projects.

The funding crisis is evident in the payment records for individual stadiums:

MISC Kasarani: The two-phase refurbishment is estimated at Sh6.66 billion. While Sh2.93 billion has been paid for phase one, no funds have been released for the second phase. Nyayo National Stadium: Upgrades are projected to cost Sh2.68 billion across two phases. Only Sh200 million has been paid for the first phase, with nothing for the second.

Kipchoge Keino Stadium: Out of a contract cost of Sh3.51 billion, only Sh300 million has been disbursed.

Police Sacco Stadium: A mere Sh50 million has been paid against a total cost of Sh713 million.

Ulinzi Sports Complex: Similarly, only Sh50 million has been released for a project with a Sh1 billion contract.

With deadlines looming, the significant funding gap places Kenya at risk of failing to meet its hosting commitments for the prestigious continental tournament.

Several key sports entities in Kenya are slated for significant financial boosts, with the Department for Sports requesting substantial additional funding to cover everything from stadium construction to anti-doping efforts and legal settlements.

The Anti-Doping Agency of Kenya (Adak) is seeking an extra Sh96 million to fully implement the 2021 World Anti-Doping Code. Meanwhile, Sports Kenya has requested a much larger sum of Sh580 million for various infrastructure projects.

A significant portion of this, Sh300 million, is earmarked for building a perimeter wall around its 1,000-acre property in Kasarani.

Further breakdowns of Sports Kenya's request include Sh140 million for renovating the swimming pool at Nyayo National Stadium and Sh10 million to repair the circulation system at the Moi International Sports Centre (MISC), Kasarani pool.

An additional Sh130 million is planned to install solar panels at both the Nyayo and Kasarani stadiums, aimed at reducing energy costs and promoting green initiatives.

Beyond new projects, Sports Kenya also requires Sh336 million to cover operational costs, including staff pension claims, utilities, gratuity, and the insurance and maintenance of its sports facilities.

The Department for Sports headquarters itself is requesting an additional Sh395 million for its recurrent budget. This includes Sh100 million for coordinating and preparing for the 2027 Africa Cup of Nations (Afcon) and another Sh100 million for monitoring sports programmes and infrastructure projects.

Furthermore, Sh50 million each will be allocated to the review of the National Sports Policy and Sports Act, preparations for the 2026 Commonwealth Games, and the 2026 Youth Olympics.

A major factor driving the proposed Sh4.82 billion budget increase for the 2025/26 fiscal year is a Sh3.8 billion court awards related to a land dispute. The settlement concerns the 79-acre parcel of prime land on Ngong Road in Nairobi, where the Talanta Sports City is currently under construction.

Initially, the Treasury had allocated Sh17.46 billion to the Department for Sports for 2025/26, with Sh1.62 billion for recurrent costs and Sh15.83 billion for development.

However, the Supplementary Estimates No. 1 has pushed the total allocation to Sh22.29 billion. This reflects a Sh4.82 billion jumps in development expenditure, bringing it to Sh20.63 billion.

Sports Principal Secretary Peter Tum Mwangi explained that a local court had originally awarded Telkom Kenya Sh15 billion in compensation for the land.

This figure was later revised down to Sh9.18 billion following an out-of-court settlement. The Sh3.8 billion included in the supplementary budget is part of the government's payment towards this agreed amount.

“The additional allocation of Sh4.8 billion will enable the State Department to address personnel capacity gaps, strengthen sports governance through enhanced election oversight, improve funding for sports development programmes, and facilitate settlement of legally binding financial obligations,” Mwangi stated.