EACC sues to recover Sh330 million in CHAN stadium contract
National
By
Mike Kihaki
| Feb 10, 2026
The Ethics and Anti-Corruption Commission (EACC) has moved to court seeking to recover Sh330 million allegedly lost through an irregular stadium security contract ahead of the 2018 African Nations Championship (CHAN).
According to court papers filed on January 22, 2026, the EACC has named former Principal Secretary for Sports Development Amb Peter Kirimi Kaberia, former Football Kenya Federation (FKF) president Nick Mwendwa, senior officials at the Ministry of Sports and Culture, and directors of Restea Enterprise Ltd, Leasepride Limited and Leasepath Limited.
The commission alleges that the individuals and firms jointly facilitated the irregular acquisition and laundering of public funds in what investigators describe as a grand procurement fraud.
The case stems from a 2017 contract awarded by the State Department for Sports Development for the design, supply, testing, commissioning and supervision of security, access control, communications, audiovisual and pitch lighting systems in several stadiums.
The contract, valued at about Sh1.5 billion, was awarded to Auditel Kenya in preparation for CHAN 2018. An advance payment of Sh330,573,997 was made before any work was carried out.
EACC investigations show the contract, executed on September 14, 2017, was signed by Amb Kaberia on behalf of the Government of Kenya and Marcos Gonzalez Puente on behalf of Auditel Kenya. It was witnessed by then FKF president Nick Mwendwa and CHAN 2018 event director Herbert Mwachiro.
However, investigators say the procurement was single-sourced in violation of public procurement laws and riddled with irregularities. They found no tender documents had been prepared, no purchase requisition approved, and no bid security, tender evaluation committees or professional opinions were in place.
Auditel Kenya also allegedly failed to provide a performance bond, and no contract implementation or inspection committee was appointed.
“Public funds were released without adherence to mandatory procurement safeguards, exposing the taxpayer to massive loss,” the EACC said in its court filings.
Just over a month after the contract was signed, Auditel Kenya invoiced the ministry for an advance payment of Sh476 million. On January 19, 2018, Sh330.57 million was transferred to the firm’s account at Bankinter in Madrid, Spain, despite the absence of a milestone completion certificate.
Investigations later established that no access control, security, or pitch lighting systems were installed in any of the CHAN 2018 stadiums.
Auditel Kenya, a foreign entity registered locally in August 2017, was dissolved in June 2020.
According to the EACC, a money-trail analysis showed that portions of the funds were transferred to local companies and individuals linked to the procurement process.
Court records indicate that on March 15, 2018, Restea Enterprise Ltd received Sh25.68 million from Auditel Kenya. Leasepride Limited received Sh2.96 million on January 29, 2018, and a further Sh6.06 million on May 7, 2018. On the same January date, Leasepath Limited, directed by Marcos Gonzalez Puente, received Sh2.96 million.
Investigators also allege that Alex Kilingi and Mr Mwendwa received Sh1.59 million and an additional Sh999,200 through Restea-linked transfers, while Sports Kenya engineer John Ruga allegedly received Sh3.7 million from Mr Mwendwa in January 2018.
The commission is seeking recovery of the Sh330 million and has recommended criminal charges, including abuse of office and violations of procurement laws. The investigation file has been forwarded to the Office of the Director of Public Prosecutions for action.