Questions over Sports Kenya decision to award one firm four stadium deals worth Sh2.2bn

• Article 227 (1) of the Constitution states that when a State organ or any other public entity contracts for goods or services, it shall do so in accordance with a system that is fair, equitable, transparent, competitive and cost-effective.
• This is elaborated in section 91 of the Public Procurement and Asset Disposal (PPAD) Act, 2015 on the choice of procurement procedure.

Sports Kenya is in the eye of a storm after Auditor-General Nancy Gathungu exposed how the state agency irregularly handed four contracts worth Sh2.2 billion to a single construction firm.

The audit of Sports Kenya's accounts for the fiscal year 2024/25 shows that the state agency bypassed procurement laws to award Modern Precast the contracts, of which Sh839.4 million has been paid to the company.

The audit shows the company was awarded Sh502.4 million to construct Raila Odinga Stadium in Homa Bay, with Sh349.02 million already paid, and Sh226.7 million for additional works on the Raila Odinga Stadium.

The company was also awarded Sh865.2 million to construct the famous Kamariny stadium in Elgeyo Marakwet County and Sh568.8 million to put up Kinarani stadium in Kwale County, of which Sh490.3 million has been paid by the state.

“Sports Kenya did not provide evidence that the contracts were competitively awarded as required,” the audit reads, noting the irregular award violates the constitution and the laws of the land.

Article 227 (1) of the Constitution states that when a State organ or any other public entity contracts for goods or services, it shall do so in accordance with a system that is fair, equitable, transparent, competitive and cost-effective.

This is elaborated in section 91 of the Public Procurement and Asset Disposal (PPAD) Act, 2015 on the choice of procurement procedure.

The procurement law states that open tendering shall be the preferred procurement method for procurement of goods, works and services.

“Open tendering shall be adopted for procurement of goods, works and services for the threshold prescribed in the respective national and county regulations,” the law states.

However, the procuring entity may use an alternative procurement procedure “only if that procedure is allowed and satisfies the conditions under this Act for use of that method.”

Sports Kenya, a state corporation established under the Sports Act, 2013, is domiciled under the Ministry of Youth Affairs, Creative Economy and Sports, whose Cabinet Secretary is Salim Mvurya.

It inherited the functions of the defunct Sports Stadia Management Board (SSMB) and the Department of Sports.

It has the broad mandate of sports talent and programme development, infrastructure management and expansion as well as economic and commercial promotion.

Other than flouting the constitution and the procurement law, a review of financial records, according to Ms Gathungu, revealed that “there was no evidence that the works were budgeted for and included in the approved procurement plan.”

This is contrary to the procurement law.

Section 53 (2) of the PPAD Act provides that an accounting officer shall prepare an annual procurement plan that is realistic as set out in the regulations within the approved budget prior to commencement of each financial year “as part of the annual budget preparation process.”

Notably, the audit shows that Sports Kenya did not provide tender opening minutes, tender evaluation minutes, inspection and acceptance committee minutes and certificates of completion.

The audit notes that the contractor was awarded an additional contract for the Raila Odinga Stadium at a contract sum of Sh226.7 million, yet the works for the original contract had not yet been fully executed.

“Sports Kenya did not provide justification for the decision,” says Ms Gathungu.

Further, Ms Gathungu revealed, no memorandum of understanding with the counties concerning the construction, management and maintenance of the stadia was provided for audit review.

Sports Kenya also did not provide the auditors with the agreements with the counties indicating the scope of collaboration and specific works for each party.

Despite this, Homabay County government installed 120 floodlights at the Raila Odinga Stadium as per the physical verification carried out in June 2025.

However, during the execution of the contract by Sports Kenya, the floodlights were reduced to 96, with 24 floodlights not provided for physical verification “and therefore their existence could not be confirmed.”

Further, Ms Gathungu says storm water drainage, which had a provision of Sh8.5 million, had not been implemented, an indication that the propriety of the expenditure and value for money could not be confirmed.

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