Kenya Grapples With Sh14.47 Billion Budget Gap as AFCON 2027 Stadium Plans Stall

Kenya’s preparations to co-host the 2027 Africa Cup of Nations (AFCON) have been thrown into uncertainty following a massive funding deficit of Sh14.47 billion within the State Department for Sports. The financial strain has significantly slowed down, and in some cases halted, key infrastructure projects—especially the renovation and construction of stadiums required for the tournament.

The scale of the budget gap was disclosed in the 2025/26 Supplementary Estimates report presented to the National Assembly’s Committee on Sports and Culture. Principal Secretary Elijah Mwangi revealed that AFCON-related projects alone account for Sh11.37 billion of the overall deficit, making them the largest contributor to the crisis.

Kenya, in partnership with Uganda and Tanzania under the “East Africa Pamoja Bid,” committed to upgrading its sporting infrastructure to meet international standards. The main venues expected to host matches include the Moi International Sports Centre (MISC) in Kasarani and the Talanta Sports City, which is still under construction. Kipchoge Keino Stadium in Eldoret has also been identified as a backup venue.

Construction Delays Stall Critical AFCON Projects

Despite these ambitious plans, progress on multiple stadiums and training grounds has stalled due to insufficient funding. According to the report presented by Mwangi, the total cost of upgrading key venues—including MISC Kasarani, Nyayo National Stadium, Kipchoge Keino Stadium, Police Sacco Stadium, and Ulinzi Sports Complex—stands at Sh15.11 billion. However, only Sh3.7 billion has been paid so far, leaving a significant financial gap that continues to delay completion.

Mwangi pointed out that the Sports, Arts and Social Development Fund (SASDF), which serves as the primary financing source for these projects, is under immense pressure due to competing financial obligations. Among its commitments are a Sh6.29 billion annual loan repayment for Talanta Sports City, approximately Sh6 billion set aside for hosting various sporting events, and additional funding directed toward constituency sports academies and community facilities.

Because of these overlapping demands, the fund is unable to adequately support the urgent needs of AFCON 2027 infrastructure projects. Mwangi emphasized that without immediate financial intervention, meeting tournament deadlines will be extremely difficult.

The Ministry has also requested an extra Sh4.82 billion in the supplementary budget. However, this request is separate from the Sh14.47 billion deficit affecting the department’s broader operations, meaning the funding challenges remain substantial even with additional allocations.

Breakdown of Affected Stadium Projects

The funding constraints are clearly reflected in the disbursement figures for individual stadium projects, many of which have received only a fraction of their required budgets.

The refurbishment of MISC Kasarani is planned in two phases at a total cost of Sh6.66 billion. While Sh2.93 billion has been released for the first phase, the second phase has yet to receive any funding. Similarly, the renovation of Nyayo National Stadium is projected to cost Sh2.68 billion across two phases, but only Sh200 million has been disbursed so far, leaving the majority of the work unfunded.

Kipchoge Keino Stadium in Eldoret has a contract value of Sh3.51 billion, yet only Sh300 million has been paid. Police Sacco Stadium has received just Sh50 million against a total cost of Sh713 million, while Ulinzi Sports Complex is in a similar situation, with Sh50 million released out of a required Sh1 billion.

These figures highlight the scale of the problem, as contractors face delays and projects remain incomplete. With AFCON timelines approaching, the lack of consistent funding raises serious concerns about Kenya’s ability to deliver on its commitments.

Additional Funding Requests Across the Sports Sector

Beyond stadium construction, several sports institutions in Kenya are seeking additional financial support to sustain their operations and meet international obligations.

The Anti-Doping Agency of Kenya (ADAK) has requested an extra Sh96 million to fully implement the 2021 World Anti-Doping Code. This funding is critical for ensuring compliance with global standards and protecting the integrity of Kenyan sports on the international stage.

Sports Kenya, the body responsible for managing many of the country’s sports facilities, has submitted a request for Sh580 million. A large portion of this—Sh300 million—is intended for the construction of a perimeter wall around its expansive 1,000-acre property in Kasarani.

Other proposed expenditures include Sh140 million for renovating the swimming pool at Nyayo National Stadium and Sh10 million for repairing the circulation system at the Kasarani pool. Additionally, Sh130 million has been earmarked for installing solar panels at both Nyayo and Kasarani stadiums, a move aimed at reducing long-term energy costs and promoting environmentally friendly operations.

Sports Kenya has also indicated the need for Sh336 million to cover operational expenses such as staff pensions, utilities, gratuity payments, and the maintenance and insurance of sports facilities. These recurring costs further strain the already stretched budget.

Government Seeks Increased Budget Allocation

The State Department for Sports headquarters has also requested an additional Sh395 million to support its recurrent expenditures. This includes Sh100 million dedicated to coordinating preparations for AFCON 2027 and another Sh100 million for monitoring and evaluating sports programmes and infrastructure projects across the country.

In addition, allocations of Sh50 million each have been proposed for reviewing the National Sports Policy and Sports Act, preparing for the 2026 Commonwealth Games, and supporting Kenya’s participation in the 2026 Youth Olympics.

A major factor behind the proposed Sh4.82 billion increase in the supplementary budget is a Sh3.8 billion court award linked to a land dispute. The case involves a 79-acre parcel of land located along Ngong Road in Nairobi, where the Talanta Sports City is currently being developed.

Initially, the National Treasury had allocated Sh17.46 billion to the State Department for Sports for the 2025/26 financial year, with Sh1.62 billion designated for recurrent expenditure and Sh15.83 billion for development projects. However, following Supplementary Estimates No. 1, the total allocation has risen to Sh22.29 billion, largely due to increased development spending.

Legal Settlements Add Pressure to Sports Budget

Principal Secretary Peter Tum Mwangi explained that the land dispute was originally settled in court with an award of Sh15 billion in compensation to Telkom Kenya. This figure was later reduced to Sh9.18 billion after an out-of-court agreement between the parties.

The Sh3.8 billion included in the supplementary budget represents part of the government’s obligation under this settlement. While necessary, this payment has added further strain to an already limited budget, diverting funds that could have been used for infrastructure development.

Mwangi noted that the additional funding would help address staffing gaps, improve governance within the sports sector, enhance oversight of elections, and support the implementation of development programmes. It will also enable the government to meet legally binding financial commitments such as the land settlement.

Uncertain Road Ahead for AFCON 2027

As deadlines for AFCON 2027 draw closer, Kenya faces mounting pressure to resolve its financial challenges and accelerate stalled projects. The significant funding gap, combined with competing budget priorities, places the country’s hosting ambitions at considerable risk.

Without timely intervention and increased financial support, critical infrastructure may remain incomplete, potentially affecting Kenya’s ability to meet the standards required for hosting a major continental tournament. The coming months will be crucial in determining whether the country can overcome these obstacles and deliver on its promises as part of the East Africa Pamoja Bid.