Nick Mwendwa: Ex-FKF Boss Embroiled in Ksh330 Million CHAN Tournament Scandal

The Ethics and Anti-Corruption Commission (EACC) has initiated legal proceedings against several former sports officials, including ex-Football Kenya Federation (FKF) President Nick Mwendwa, in connection with an alleged Ksh330 million scandal.

The lawsuit centers on funds reportedly lost through illegal and irregular stadium contracts awarded in 2017. The EACC alleges that payments were made for work that was never completed. The funds were purportedly channeled to Madrid, Spain, before being returned to Kenya via Auditel Limited, a Spanish-Kenyan company.

Among those targeted by the suit are former Sports Principal Secretary Peter Kaberia, former State Department for Sports Development Director Haron Komen Chebet, and former Ministry of Sports Procurement Head Isaac Okoth Omogi. Sports Kenya official John Ruga is also named.

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Other individuals listed include former senior finance officer Stephen Njoroge Muthane, Samuelbaa Njoroge, Auditel director Marcos Gonzalez Puente, Antony Mwangi, and Kitheka Muema. Additionally, three companies—Restea Enterprise Limited, Leasepride Limited, and Leasepath Limited—are named as corporate defendants for their alleged role in receiving or laundering the funds.

The EACC is focusing on a Ksh330.5 million advance payment made to Auditel Kenya’s Spanish account in January 2018. This payment was part of a larger $15.9 million (Ksh1.5 billion at the time) contract for designing and installing security, communications, and lighting systems for Kenya's unsuccessful bid to host the 2018 Africa Nations Championship (CHAN).

According to the anti-graft agency, the contractor invoiced an advance of $3.687 million (Ksh476 million per current exchange rate) just five weeks after the contract was signed, despite not fulfilling key contractual obligations, such as providing a milestone completion certificate.

“No work was performed, inspected, or accepted, meaning no value was received for the payment,” the EACC stated. The commission claims that multiple laws were broken, including the Public Procurement and Assets Disposal Act and the Anti-Corruption and Economic Crimes Act.

By the time the contract expired, none of the specified security systems had been installed, a failure that significantly contributed to Kenya losing its hosting rights for the tournament.