The land was to build 2,430 staff housing units, with Exclusive Estates Ltd appointed by Telkom Kenya as the agents for the project.
However, the housing units never materialised and Exclusives Estates and Telkom Kenya went into arbitration.
Following the arbitration in 2019, Exclusives Estates was awarded 60 acres out of the 90 acres that the Telco owns on Ngong Road.
Telkom Kenya went to the High Court and successfully set aside the award, which saw the land ownership rights revert to the telco.
In 2020, the Sports, Gender and Culture Ministry advertised a call for bids for the construction of the Posta Sports Complex on the piece of land.
The multi-million-shilling complex shall host four football fields, one rugby field an athletics running field and gym facilities.
According to Telkom Kenya, the tender was awarded to Dallo Holdings Ltd, which began construction without the consent of the telco.
"The Ministry of Sports' construction of their intended sports complex is further deprivation of Telkom Kenya's constitutional right to property," says the telco in court documents.
"This shall cause Telkom Kenya irreparable loss and damage that cannot be compensated by an award of damages."
In his recent ruling, Justice Mboya granted the Attorney General a 30-day stay of execution and dismissed petitions by Exclusive and Postel with costs to Telkom Kenya.
If no appeal is filed, the ruling could see taxpayers on the hook for Sh15 billion in payments owed to Telkom Kenya by the Sports Ministry.
Last year, Telkom Kenya formerly reverted to a fully State-owned entity after the government paid out Sh6 billion to majority shareholders Helios Investment Partners in a controversial deal signed in the run-up to the August General Election.