Nairobi Kenya: Sports Cabinet Secretary Salim Mvurya has defended the increased construction cost of Talanta Sports City, saying taxes and import-related charges significantly pushed up the final project price ahead of the 2027 Africa Cup of Nations tournament.
The project’s cost rose from an initial estimate of KSh35.2 billion to KSh45.8 billion, triggering concerns from the Senate Standing Committee on Roads, Transportation and Housing as well as queries from the Auditor General regarding procurement procedures and value for taxpayers’ money.
In a letter dated March 25 addressed to the Clerk of the Senate, Mvurya explained that the original estimate had been based on preliminary designs and did not include statutory taxes and import levies.
“The initial cost did not include applicable taxes such as VAT, railway development levy (RDL), customs duty, import declaration fee (IDF), and import charges for imported components. During procurement, it was necessary to include all these taxes since the project was not tax-exempt,” Mvurya stated.
According to the Sports CS, the base construction cost stood at KSh34.6 billion before additional charges were factored in. Import-related levies added approximately KSh5 billion, while VAT at 16 percent contributed another KSh6.4 billion, pushing the total project cost to KSh46.1 billion before a KSh248.6 million discount lowered the final contract sum to KSh45.8 billion.
Mvurya also defended the government’s decision to award the tender directly to China Road and Bridge Corporation, citing the company’s technical and financial ability to complete the project within the strict timelines required for AFCON 2027 preparations.
“The contract was awarded to the China Road Bridge Company due to their technical and financial capacity to undertake complex projects. The ministry ensured that all necessary approvals were obtained, including from the Attorney General’s office,” he said.
The Auditor General had questioned the use of direct procurement instead of competitive tendering and sought clarification on legal approvals for projects exceeding KSh5 billion.
Despite the concerns, Mvurya maintained that all procurement procedures complied with Public Procurement Regulatory Authority guidelines and assured lawmakers that the agreement remained fair to both the government and the contractor.
The Sports CS further revealed that construction progress currently stands at 87 percent completion. The main stadium structure is reportedly 89 percent complete, with ongoing works including roof covering, waterproofing, spectator terraces and interior finishing.
Outdoor training facilities, including two training pitches and changing rooms, are 82 percent complete, while external infrastructure works such as parking bays, access roads, landscaping and fencing have reached 86 percent completion.
“I wish to assure this Honourable House that the project shall be completed in time and to the highest standards,” Mvurya added while inviting members of the Senate committee to inspect the project site.
Kenya is co-hosting AFCON 2027 alongside Uganda and Tanzania, with Talanta Sports City expected to play a central role in the tournament preparations.
