Revealed: How Sports Kenya spent Sh607 million on ghost stadiums

A parliamentary committee heard how Sports Kenya splashed Sh607.2 million on feasibility studies and consultancy services for construction of three stadia in Nairobi, Mombasa and Eldoret, which never took off.

This came on a day that MPs also questioned Sports Kenya, a state corporation mandated to develop, manage and market quality sport and recreation facilities, over suspect contract variations during the refurbishment of Kipchoge Keino Stadium from an initial Sh109 million to Sh3 billion.

During a sitting of the National Assembly’s Public Investment Committee on Social Services and Agriculture (PIC-SSA), it emerged that Sports Kenya engaged a consortium of four firms (two locals and two foreign) for construction of three stadia in January 2015 in a project expected to cost Sh42 billion.

According to documents tabled before the committee, the corporation then spent Sh607 million in consultancy services and feasibility studies but to date, the stadia have never been built.

The total amount comprised Sh507 million paid to the consortium for architectural designs, quantity survey and project management services and a further Sh99 million paid for feasibility studies.

“I have directed that this committee will conduct a full inquiry into this issue. You should provide us with details on the consortium, physical addresses of the local and foreign companies, how much each was paid and the exact areas of where the stadia were to be constructed,” said the sessional chair Caleb Amisi.

He also wondered how the project cost of Sh42 billion had been arrived at and why no stadia had been constructed years later. “Explain to us in simple terms why you paid millions for a project that never took off?” he posed.

Mandera Woman Rep Sheikh Umul sought more details on how the firms involved in the consultancy were procured and the specific details of the contractors. “We as a committee gave you enough time to come here and table your evidence but instead you came here and you are casually saying you will provide the required documents in seven days. That shows you are not serious as an institution,” she stated.

Othaya MP Wambugu Wainana took issue with the corporation’s management failure to furnish the committee with an M.o.U between it and the contractors, and title deeds of the land on which the stadia were to be contracted.

The committee was, however, shocked to learn that the title deeds did not exist. In Sports Kenya defence, Director General Gabriel Komora submitted that the entire cost of Sh42 billion was based on feasibility studies which came up on the scope of work. He explained that the stadia being proposed were to be world class and would be multi-use facilities. The 40,000 seating capacity stadia would also have amenities for football, rugby and athletics.

“The reason why the stadia were never constructed is because the government changed its priorities and it instead deferred these particular projects. The designs are the property of the government which can be used as need arises,” he said.

Amisi however took the DG to task asking him to provide plans of where the stadia were to be erected. To which Komora said they were non-existent but that they had engaged government institutions which had agreed to provide land for the undertaking.

“So the stadia were to be constructed based on negotiations? I direct that as you appear before this committee next time, you give us a status report of all stadia in the country since 2015 until now,” reiterated Amisi.

At the same time, the committee is investigating the suspect contract variation during the rehabilitation of Kipchoge Stadium in Eldoret.

Yesterday, it also emerged that in the 2014/15 financial year, a contractor undertook works on the stadium for an initial contract of Sh109 million but which was later altered to Sh355 million.

It also emerged that currently, the stadium is undergoing Sh3.9 billion worth of renovations in preparation for the AFCON tournament. Yesterday, the lawmakers sought to understand what necessitated the contract variation and why it needed to be upgraded again at Sh3 billion.

“Why was the varied amount not included in the initial contract in the first place?” posed Amisi.

Ndiwa MP Martin Owino added, “The issue of variations is abused. They should be done within limits but not this.”

And in his response DG komora explained that the projected has since been completed and that the scope of work had dictated the variation in contract amount.

“The project was completed and a track installed. This was in 2016 and as ypou know the track has a lifespan of 10 years. It has since been heavily used by athletes and is due for an upgrade,” said the DG.

But in a quick rejoinder, Amisi noted, “This Sh365 million, what did it do and for how long? If it was a shoddy job, then there was no value for money. This committee will conduct a site visit to establish the facts before proceeding on report writing.”