Chan 2018 rot: How Sh1b grass pitch tender kicked off fierce courtroom battle

Former Sports Principal Secretary Peter Kirimi Kaberia and former Football Federation of Kenya boss Nick Mwendwa. [File, Standard] The Anti-Corruption High Court in Nairobi has barred the Ministry of Sports from paying Sh220 million to a private company hired to install grass and equipment in preparation for the 2018 African Nations Championship (Chan) in Kenya. This follows a Sh1.1 billion tender saga that found its way in court. Justice Lucy Njuguna issued the orders in a case brought by the Ethics and Anti-Corruption Commission (EACC) against former Sports Principal Secretary Peter Kirimi Kaberia, and former sports officials John Ruga, Haron Komen Chebet, Isaac Okoth, the ex-Football Federation of Kenya (FKF) boss Nick Mwendwa, and a company identified as Gregori International. The orders issued by Justice Njuguna are the result of the fierce court battle between Gregori International and the ministry, with the private firm aiming to have the ministry officials jailed for not paying the contested Sh220 million. On the other hand, EACC requests the court to declare the entire contract, valued at Sh1.1 billion based on the current exchange rate, null and void. Gregori was before Justice Roselyn Aburili, arguing that the defiance by the ministry was contrary to orders issued by Justice David Majanja, following the ministry's admission that the contract was valid. EACC first applied to Justice Aburili to halt the contempt proceedings. The judge ordered a freeze for 90 days starting from June, 23, 2025 and instructed the Commission to provide the court with an update on September 29, 2025. In its case, the Commission argued that the ministry flouted procurement laws by making advance payments and failing to set up inspection, implementation, and acceptance committees to oversee the project. In addition, EACC argued that the ministry awarded the tender while knowing it was not registered by the National Construction Authority and did not bother to engage in negotiations for a fair price. The Commission said that the ministry overpaid Gregori by more than 1.95 million euros (Sh294 million). The Sports ministry awarded Gregori the contract for design, mobilisation, grass removal, irrigation, levelling, soil preparation, and fertilisation, as well as the installation of Bermuda or Pasalum grass and sports equipment in five stadiums and 10 training centres in Kenya, in preparation for the CHAN 2018. However, Kenya was stripped of the right sporting event after Confederation of African Football found that Kenya was ill-prepared . According to CAF, an inspection team found that only one of the four venues was ready to stage the event. Morocco was then awarded the tournament, with Kenya's withdrawal blamed on lack of football infrastructure and commitment. Gregori would later sue the ministry, the Sports PS, and the Attorney General in 2020. Gregori's Chief Executive Officer and Chairman, Xavier Jean Gregori, stated that the agreement was that his company would be paid 7.4 million euros (Sh1.1 billion at current rate) in instalments of 20 per cent. According to Gregori, the price of equipment meant for maintenance of the grounds was 433,319 euros (Sh65 million), where 50 per cent was to be provided once the order for maintenance was made, while the other half would be paid upon delivery of the equipment on site. The amount for maintenance training was Euros 236,640 (Sh35 million), which was to be paid quarterly in equal instalments. Gregori was demanding by February 26, 2018, a total of Euros 2.6 million euros (Sh371 million at the current rate). On the other hand, the Attorney General (AG), urged Justice Majanja to dismiss the case. The AG claimed that Gregori was identified by CAF to improve several sports stadia in the country within strict timelines to host the final tournament of CHAN 2018. However, the government's legal advisor said Gregori failed to deliver the works within the required time, and as a result, the games were moved from Kenya to Morocco. According to the AG, by this time, Gregori had been paid Sh220 million, which the government of Kenya was supposed to recover in the form of broadcasting rights and other benefits that come with hosting an international event. The ministry and the AG urged the court to consider that Gregori allegedly lacked the capacity to complete the works within the set timelines, causing Kenya significant losses. Consequently, the defendants invoked Article 11 of the contract on force majeure (act of God) as the contract had been frustrated due to the firm's slow pace of work. However, Justice Majanja dismissed the ministry and AG's case on June 30, 2022, after finding that they decided to continue with the contract despite CHAN being moved. "The defendants had the opportunity to put forth a contrary case when confronted with evidence on oath by the plaintiff but they did not," ruled Justice Majanja. The ministry stuck to its guns that it would not pay, prompting Gregori to seek orders from Justice Aburili to force the officials to pay. Nevertheless, at the Anti-Corruption High Court, EACC argued that following its investigations, Gregori should return the money paid to it, as the entire process was allegedly corrupted by illegalities, corruption, and collusion among Kirimi, Ruga, Komen, Okoth, Mwendwa, and Gregori. EACC claimed that Kirimi failed to properly inform the AG about what transpired, leading to a judgment on admission. According to the Commission, the case was intended to obtain 'courts blessings' despite the amount being allegedly unjust enrichment. The Commission also alleged that Ruga failed to declare that he had allegedly received Sh3.5 million from Mwendwa on January 9, 2018. At the same time, the court heard that Ruga allegedly received an additional Sh200,000 from the former FKF boss. "The first, second, third, fourth and fifth respondents and in their respective course of their employment were grossly negligent and in breach of fiduciary duties to the procurement of Tender No. MOSCA/CHAN/002/2017-2018, thus leading to irregular, illegal and fraudulent award of the subject tender and consequent payment in favour of the sixth defendant," explained EACC investigator Evans Rono. In the documents submitted before Justice Aburili, Sports PS Elijah Mwangi stated in his reply that former Sports Cabinet Secretary Ababu Namwamba had met with Gregori to negotiate the payment of the balance. According to Mwangi, the agreement was that an initial payment of one million euros (Sh151 million) would be made during the 2024/25 financial year, while the remaining balance would be settled in the 2025/26 year. He said that the then Attorney General Justin Muturi communicated to Gregori's lawyers about it, but when they were negotiating, EACC started investigating the contract. The ministry sought guidance from the AG on what would happen if the firm was paid and EACC found irregularities. The PS said that while the ministry was waiting the AG's response, it wrote to Treasury this year to provide the settlement funds. The court heard that on May 16, 2025, the AG wrote to the ministry seeking for a round table meeting between it and EACC. "EACC informed the Attorney General and the Ministry, which information I verily believe to be true, and that investigations into the matter had been completed and the report would soon be submitted to the two offices shortly, and requested parties to hold any payments as it seeks to be enjoined in the suit to safeguard against loss of public funds," said Mwangi. He argued that the payment was delayed due to the investigations. In the exchanges submitted before the court, the ministry had admitted that it owed Gregori the money. In his letter dated August 31, 2022, the former Solicitor General Ken Ogeto, copied to the then Sports CS Amina Mohammed and then Attorney General Kihara Kariuki, urged the then PS Joe Okudo to settle the money as ruled by the court and to engage Gregori in a bid to resolve the dispute. "In the meantime, and noting the Ministry's admission of its indebtedness to the plaintiff in the letter dated November 24, 2020 and in the project status report we advise the ministry to settle the adjuficated amount of Euro 2.2 million (Sh332 milion) and to take the lead in engaging the plaintiff with the view of resolving this dispute amicably to mitigate against loss of public funds," wrote Ogeto. On 14 May 2024, Namwamba wrote to Muturi requesting that the AG's office draft a settlement agreement, which would include, among other things, that the case before the court be marked as settled and that the money be paid within two financial years. Following to Namwamba's letter, the Solicitor General Shadrack Mose wrote to Gegori's lawyer Ben Aloo indicating that the settlement of the amount adding that there would be no orders as to the interest and cost of the case. On April 8, 2025, the Sports PS, Mr. Mwangi, wrote to the Treasury PS Dr. Chris Kiptoo indicating that the Ministry had paid Sh220 million but there was a balance of Sh487 million. In the letter, Mwangi was requesting Kiptoo's office for additional Euros 2 million (Sh302 millin), which would be sent to the AG's office for payment of the negotiated sum. In response, Kiptoo told Mwangi that the Ministry ought to scale down Sports, Arts and Social Development Fund (SASDF) obligations to create space for it to settle the amount which are currently around Sh294 million. He stated that SASDF had been an approved budget of Sh16.8 billion. "In view of the above and in order to avoid further litigation on the matter, it is advisable that the State Department should scale down its commitments under the SASDF that has approved budget of Sh16.8 billion and create fiscal space to settle the negotiated amount," he replied in the letter dated May 9, 2025.

Chan 2018 rot: How Sh1b grass pitch tender kicked off fierce courtroom battle

Get Full Access for Ksh299/Week.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

DIGGER JOBS

Digger Motors

Digger Real Estate

Chan 2018 rot: How Sh1b grass pitch tender kicked off fierce courtroom battle

Get Full Access for Ksh299/Week.

Related Topics

Trending Now

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS