Talanta Stadium KSh 10.85 Billion Cost Scandal Exposed Ahead of AFCON 2027

An audit has uncovered a KSh 10.85 billion cost discrepancy in the Talanta Stadium project as Kenya prepares to host the 2027 Africa Cup of Nations.

A new report by Auditor-General Nancy Gathungu has revealed that the construction cost of Nairobi’s Talanta Sports City may have been inflated by KSh 10.85 billion. The findings cast doubt on the financial management of the 60,000-seat stadium, a flagship project tied to Kenya’s preparations for the 2027 continental tournament.

According to the audit, the tendering process violated procurement regulations. The report further indicates that the contract was issued without mandatory clearance from the Attorney-General, highlighting significant procedural lapses in how the project was approved.

The review of the Ministry of Defence’s accounts for the 2024/25 financial year showed that the National Treasury had authorised Sh35 billion for the development through the Sports and Arts Social Development Fund (SASDF) over a six-year period. However, the final contract was awarded at Sh45.85 billion. This created what the Auditor-General described as an “unsupported price variation” of Sh10.85 billion.

On May 26, 2024, the Ministry of Defence signed a two-year agreement with a foreign contractor for the design, construction, and equipping of the 60,000-seat facility at a total cost of Sh45,848,051,675 (US$344,514,966). The stadium is central to Kenya’s infrastructure commitments for the 2027 Africa Cup of Nations.

Talanta Stadium Contract Awarded Without Clearance

A key concern raised in the audit is that the contract was finalised without prior approval from the Attorney-General, which is required for all government contracts exceeding Sh5 billion.

“Clearance from the Attorney General for the award of the contract was not provided for audit,” the report states. At the time, Justin Muturi was serving as Attorney-General.

The audit also faulted the procurement method applied in awarding the contract. Before the agreement was signed, the Ministry of Sports, Culture and Social Services had transferred both the procurement responsibility and Sh2.01 billion to the Ministry of Defence.

According to the report, the project was awarded through direct procurement, a method that did not satisfy the competitive requirements outlined in the Public Procurement and Asset Disposal Act of 2015. Under the law, open tendering is the default approach. Direct procurement is only allowed under specific circumstances, such as urgent emergencies, national security concerns, or where a supplier holds exclusive rights.

As of June 1, 2025, construction progress stood at 44.54 percent. Payments made to the contractor amounted to Sh2 billion, representing roughly 4.5 percent of the total contract value.

The Auditor-General cautioned that delays in payments could attract penalties. The contract provides for interest charges at three percent above the Central Bank of Kenya’s average base lending rate in the event of late disbursements, potentially resulting in additional and avoidable expenditure.

Further scrutiny was directed at the project’s financing framework. The audit notes that comprehensive documentation on the funding model was not availed for review. Although a revised financing structure was reportedly introduced to guarantee completion of the stadium, the limited disclosure has prompted calls for a special audit to assess whether taxpayers are receiving value for money.

Talanta Sports City is being financed through a bond floated on the Nairobi Securities Exchange. The bond repayments are to be serviced through the Sports and Arts Social Development Fund, with estimated instalments of Sh3.4 billion every six months.

To illustrate the scale of the Sh10.85 billion variance, the report notes that the amount could finance approximately 9.5 kilometres of the Rironi–Mau Summit dual carriageway or fund the education of millions of Kenyan students for an entire year.

The revelations follow concerns raised by Kiharu MP Ndindi Nyoro, who warned that the bond used to finance the project could ultimately cost taxpayers up to Sh100 billion over time.

“If this cannot make us angry as Kenyans, I don’t know what will,” Nyoro said. “Every child born in the next 15 years will have a loan tag for money they have no idea how it was used.”

Meanwhile, the National Treasury has approved Sh35 billion for the stadium’s development, with funds set to be disbursed from the Sports and Arts Social Development Fund over six years.

With Kenya gearing up to co-host the 2027 Africa Cup of Nations, the audit findings intensify scrutiny over one of the country’s most high-profile infrastructure projects, raising fresh questions about accountability, transparency, and fiscal discipline.