Sports Kenya has been questioned over how it awarded four stadium construction contracts worth Sh2.2 billion to one company after auditors found no evidence that the deals went through a competitive process.
Auditor-General Nancy Gathungu raised the concerns in her audit of the state agency’s financial records for the 2024/25 financial year, with the review also finding that the projects were not shown in the agency’s approved procurement plan.
Modern Precast received the four contracts, with Sports Kenya having paid Sh839.4 million by the time of the audit.
The company was awarded Sh502.4 million to construct Raila Odinga Stadium in Homa Bay County, of which Sh349.02 million had been paid. It was also given another contract worth Sh226.7 million for additional works at the stadium.
In Elgeyo Marakwet County, Modern Precast secured a Sh865.2 million contract for works at Kamariny Stadium.
The firm was further awarded Sh568.8 million to construct Kinarani Stadium in Kwale County, with Sh490.3 million already paid.
The Auditor-General questioned the failure by Sports Kenya to provide records showing that the contracts had been subjected to competition.
“Sports Kenya did not provide evidence that the contracts were competitively awarded,” the audit reads.
The findings raise concerns over 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 when obtaining goods and services.
The same requirement is reinforced by Section 91 of the Public Procurement and Asset Disposal (PPAD) Act, 2015.
The law identifies open tendering as the preferred method for procuring 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.
An alternative procurement method can only be used where it is permitted under the law and the conditions for applying it have been met.
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.
“There was no evidence that the works were budgeted for and included in the approved procurement plan.”
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.
The provision further requires the procurement plan to be prepared as part of the annual budget process.
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 audit therefore raises questions both about the process used to award the four contracts and whether the stadium works had been properly planned and provided for in Sports Kenya’s budget and procurement programme.