Sports CS Salim Mvurya Finally Breaks Down Why Talanta Stadium Cost Jumped by Sh10 Billion

Sports Cabinet Secretary Salim Mvurya has addressed the significant increase in the construction budget for the Talanta Sports City, attributing the Sh10 billion surge to taxes and import-related duties.

The explanation comes after the Senate Standing Committee on Roads, Transportation, and Housing raised concerns over the project's cost escalating from an initial Sh35.2 billion to Sh45.8 billion.

The Auditor General had also flagged the project, questioning the procurement process, legal compliance, and overall value for taxpayers' money.

In a letter to the Clerk of the Senate dated March 25, Mvurya clarified that the original estimate was based on preliminary designs and did not account for various taxes and levies.

"The initial cost did not include applicable taxes such as VAT, railway development levy (RDL), customs duty, import declaration fee (IDF), and import charges for imported components," Mvurya stated, as quoted by Mozzart Sport.

"During procurement, it was necessary to include all these taxes since the project was not tax-exempt."

According to the Cabinet Secretary, the base construction cost was Sh34.6 billion. Import-related charges added approximately Sh5 billion, while a 16 per cent VAT contributed another Sh6.4 billion. This brought the total to Sh46.1 billion before a Sh248.6 million discount settled the final contract sum at Sh45.8 billion.

Mvurya also defended the government's choice to award the contract to the China Road and Bridge Corporation through direct procurement.

He cited the firm's proven technical and financial capacity to deliver the stadium within the tight deadlines required for the 2027 Africa Cup of Nations (AFCON).

“The contract was awarded to the China Road Bridge Company due to their technical and financial capacity to undertake complex projects," he explained.

"The ministry ensured that all necessary approvals were obtained, including from the Attorney General's office.”

This justification directly addresses the Auditor General's query about why the project, valued at over Sh5 billion, did not undergo a competitive tendering process.

Mvurya asserted that all procurement procedures adhered to Public Procurement Regulatory Authority guidelines and described the agreement as fair to both parties.

“I wish to assure this Honourable House that the contractual agreement is very fair to all parties and that each party is adhering to the terms,” he added.

Providing an update on the construction, the Sports CS reported that the project is 87 per cent complete overall. The main stadium structure is at 89 per cent completion, with ongoing work on spectator terraces, roofing, and finishing touches.

Outdoor facilities, including two training pitches, are 82 per cent complete, while external works like parking and access roads are at 86 per cent.