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A parliamentary committee has now questioned the rationale that saw the transfer of construction works of Talanta City Sports Stadium from Sports Kenya to Ministry of Defense.
They also questioned the subsequent change in the initial cost.
The Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA) on Wednesday questioned how the cost of constructing the stadium increased by Sh10.8 billion, making it Sh45.8 billion from the initial Sh35billion.
The committee, chaired by Navakholo MP, Emmanuel Wangwe, sought to know when the Sports Kenya management, led by Director General Timothy Kilimo, took over projects and programs of Sports Kenya which mandated to construct the stadium.
They had appeared before the committee to respond to audit queries.
According to the MPs, it is unacceptable that the Ministry carried out procurement of Talanta stadium yet this was supposed to be done by Sports Kenya.
“We want all the documents. We want to look at the contract between China Road and Bridge Corporation Kenya and the Defense Ministry on the procurement deal, we want the details of the contract signed, why did the prices increase and what necessitated that difference. We also want to know the relationship between Sports Kenya and the Ministry of Defense,” Wangwe said.
Saboti MP Caleb Amisi, who is also the Vice Chairperson of the committee, regretted that there are serious questions that require interrogation, even as he sought to know the law the Ministry of Defense used to acquire projects and finances initiated by Sports Kenya.
Amisi proposed a joint sitting with Public Accounts Committee (PAC) to interrogate the issue further, especially now that the PAC scrutinizes accounts of the Defense Ministry
“I feel for you, you must be in a very precarious situation, because how does money come to you then all of a sudden it goes to the Ministry of Defence. Our financial system does not envisage that kind of money circulation. I do not know which law the Defense Ministry used to grab your project, procure and supervise,” Amisi asked.
The DG said Sports had no major role in the entire process, only that Sh2 billion passed through them from Sports Fund, which they then transferred to the Ministry.
Kilimo also said that the pronouncement made on the change of name to Raila Amollo Odinga International Sports Stadium - Talanta City is underway but has not been finalized because it is still a construction site.
Ndhiwa MP Martin Owino termed the takeover of projects initiated by Sports Kenya by the Defense Ministry unacceptable and proposed a forensic audit to establish how the procurement process was done.
“I have never seen something like this before. You cannot just transfer money; there must be requisition and paper trail following it for accountability purposes.”
The auditor said that the tender for the proposed to design, build and equip of the Talanta was awarded to China Road and Bridge Corporation Kenya at a contract sum of Sh45.8 billion and an agreement was signed to transfer procuring responsibility and supervision of the construction of the stadium from Sports Kenya to Defense Ministry.
However, the National Treasury had approved project funding of Sh35 billion, which was to be drawn from Sports and Arts Social Development Fund over a six-year payment plan against a contract amount of Sh45.8 billion, resulting in an unsupported price variation of Sh10.8 billion.
Other than the inflated cost of the 60,000-seater, Kenya’s biggest and modern football stadium, the audit raises further doubts, noting that the much-needed clearance from the Attorney-General before the award of the contract may not have been sought, or he was not involved at all.
The audit has also shown that the contractor signed a consent agreeing to the transfer of duty of obligation of making subsequent payments to the trustee on behalf of the Ministry of Defense.
The report also stated that the project implementation report as of June 1, 2025 indicated that the project was at 44.5 per cent completion level with 15 months to expected contract completion date while cumulative payments to the contractor amounted to Sh2 billion or only 4.5 per cent as at June last year.
However, the contract indicated that late payments would attract interest at 3 per cent above the Central Bank average rate for base lending prevailing as of the first day the payment becomes overdue in accordance with Article 3.5 of the contract agreement, resulting in additional avoidable project expenditure.
The audit has also shown that there was no evidence that the works were budgeted for and included in the approved procurement plan, contrary to Section 53(2) of the Public Procurement and Asset Disposal Act, 2015.
