Kenya Stadium Project Costs Spiral £68 Million Above Approved Budget
Nairobi, 23 February 2026
Auditor-General Nancy Gathungu has uncovered that Nairobi’s Talanta Sports City construction costs have ballooned by Sh10.85 billion beyond the Treasury-approved Sh35 billion budget. The Ministry of Defence awarded the contract through direct procurement without Attorney-General clearance, violating procurement laws for contracts exceeding Sh5 billion. This massive cost overrun could have funded 9.5 kilometres of dual carriageway or supported millions of students, highlighting serious questions about financial governance in major infrastructure projects ahead of the 2027 Africa Cup of Nations.
Procurement Process Bypassed Legal Requirements
The Ministry of Defence entered into a two-year contract on 26 May 2024 with a foreign contractor for Sh45.85 billion to construct the 60,000-seater stadium [1][3]. However, the contract was awarded through direct procurement which did not meet the criteria demanded by the Public Procurement and Asset Disposal Act of 2015 [1][3]. More critically, clearance from the Attorney-General was not provided for audit, despite Section 134 of the Public Procurement and Asset Disposal Act requiring such clearance for contracts exceeding Sh5 billion [3]. Former Attorney-General Justin Muturi told the Nation on 21 February 2026 that his clearance was never sought for the Talanta Sports City contract, describing the contracting as ‘one of those greatest heists to ever happen under the Kenya Kwanza regime’ [1].
Financial Structure Reveals Complex Funding Arrangements
The project financing structure involves multiple layers of financial arrangements that have raised transparency concerns. The National Treasury approved Sh35 billion in project funding from the Sports and Arts Social Development Fund (SASDF) with a six-year payment plan [1][3]. However, the Ministry of Sports, Culture and Social Services transferred procuring responsibility and Sh2.01 billion to the Ministry of Defence before the contract was signed [3]. The Talanta Stadium project is financed through a bond listed on the Nairobi Securities Exchange and serviced through the SASDF, with payments estimated at about Sh3.4 billion every six months [1][3]. Despite these arrangements, details of the funding model were not provided to the auditors, necessitating a special audit to determine the true value for money [1].
Construction Progress and Payment Obligations Transfer
As of 1 June 2025, the project was 44.54 per cent complete, with cumulative payments to the contractor reaching Sh2 billion, representing 4.5 per cent of the contract sum [1][3]. This low percentage of payments against work completed potentially exposes taxpayers to interest charges for late payment under the contract terms [1]. A significant development occurred on 22 July 2025, when a deed of assumption of payment obligations was signed between the Government of Kenya (represented by Defence Principal Secretary Patrick Mariru), Sports Kenya, and a Trustee, effectively transferring payment duties to the Trustee [1][3]. The contractor consented to this transfer of payment responsibility to the Trustee on behalf of the ministry [1].
Stadium Standards and Future Implications
The stadium development has faced additional scrutiny over construction standards. In early February 2026, the government abandoned installing fixed, non-foldable seats at Talanta Stadium after widespread criticism from Kenyans who deemed the ‘bakuli’ seats unfit for the 60,000-seater stadium in Nairobi’s Jamhuri [2]. Experts argued that the criticised seats collect more dirt, wear and tear quickly, and significantly reduce the legroom available to fans [2]. The government’s decision to replace these seats came as CAF officials were about to tour Kenya to inspect facilities for the 2027 Africa Cup of Nations [2]. The stadium is expected to host matches during the 2027 Africa Cup of Nations, making adherence to international standards crucial [3]. The Sh10.85 billion cost overrun represents a substantial misallocation of public resources that could have funded 9.5 kilometres of the Rironi–Mau Summit dual carriageway or supported millions of students [3].