The Auditor-General of Kenya, Nancy Gathungu, has raised concerns over the manner in which Sports Kenya awarded four stadium construction contracts worth Sh2.2 billion to a single company, Modern Precast. An audit of Sports Kenya's financial records for the 2024/25 financial year found no evidence that the deals went through a competitive process. The contracts were awarded to Modern Precast, which has been paid Sh839.4 million so far.
The contracts in question involve the construction of various stadiums across Kenya. Modern Precast was awarded Sh502.4 million to construct Raila Odinga Stadium in Homa Bay County, of which Sh349.02 million has been paid. The company also received Sh226.7 million for additional works at the same stadium. Furthermore, Modern Precast secured a Sh865.2 million contract for works at Kamariny Stadium in Elgeyo Marakwet County and a Sh568.8 million contract to construct Kinarani Stadium in Kwale County.
The Auditor-General's report questions the failure by Sports Kenya to provide records showing that the contracts had been subjected to competition. This omission raises concerns about compliance with Article 227 (1) of the Constitution, which requires public entities to follow procurement systems that are fair, equitable, transparent, competitive, and cost-effective. The Public Procurement and Asset Disposal (PPAD) Act, 2015, also reinforces this requirement, identifying open tendering as the preferred method for procuring goods, works, and services.
The audit also found gaps in the planning and budgeting of the stadium projects. Sports Kenya could not provide evidence that the works had been included in its approved procurement plan or that they had been budgeted for before implementation. Section 53 (2) of the PPAD Act requires an accounting officer to prepare a realistic annual procurement plan within the approved budget before the beginning of each financial year.
Sports Kenya was created under the Sports Act, 2013, and operates under the Ministry of Youth Affairs, Creative Economy and Sports, headed by Cabinet Secretary Salim Mvurya. The state corporation took over the functions previously carried out by the defunct Sports Stadia Management Board and the Department of Sports. Its responsibilities include sports talent and programme development, management and expansion of sports infrastructure, as well as economic and commercial promotion through sports.
The awarding of these contracts to Modern Precast without a competitive process has sparked concerns about the transparency and accountability of Sports Kenya's procurement processes. The Auditor-General's findings have highlighted the need for Sports Kenya to review its procurement procedures to ensure compliance with the law and to prevent similar irregularities in the future.
The issue has also raised questions about the management of public funds in the construction of sports infrastructure in Kenya. The Auditor-General's report has emphasized the importance of adhering to procurement regulations to ensure that public funds are used efficiently and effectively.
Key points
- Sports Kenya awarded four stadium construction contracts worth Sh2.2 billion to Modern Precast without evidence of competitive bidding.
- The Auditor-General's audit found gaps in the planning and budgeting of the stadium projects.
- The issue has raised concerns about the transparency and accountability of Sports Kenya's procurement processes.
