Sports Cabinet Secretary Salim Mvurya has defended the increased cost of constructing Talanta Sports City. He explained that taxes and import-related charges pushed the project cost up by more than Sh10 billion ahead of the 2027 Africa Cup of Nations (AFCON) tournament. The clarification follows concerns raised by the Senate Standing Committee on Roads, Transportation, and Housing after the stadium’s projected cost rose from Sh35.2 billion to Sh45.8 billion.
The auditor general questioned the procurement process, legal compliance, and whether taxpayers were receiving value for money. In a letter dated 25 March and addressed to the Clerk of the Senate, Mvurya explained that the original estimate was based on preliminary designs and excluded taxes and import levies tied to the project.“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,” said Mvurya.
According to the CS, the stadium’s base construction cost stood at Ksh 34.6 billion before additional levies and taxes were factored in. He revealed that import-related charges accounted for about Sh5 billion. At the same time, VAT at 16 percent added another Sh6.4 billion, pushing the total to Sh46.1 billion before a Sh248.6 million discount reduced the final contract sum to Sh45.8 billion.
Mvurya also defended the government’s decision to use direct procurement in awarding the tender to the China Road and Bridge Corporation. The CS said the firm was selected for its technical and financial capabilities to deliver the project within the 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 stated.
The auditor general had questioned why the contract bypassed competitive tendering and whether the attorney general’s approval had been sought for a project exceeding Sh5 billion. Mvurya maintained that all procurement procedures complied with Public Procurement Regulatory Authority guidelines and insisted the agreement was fair to both the government and the contractor.“I wish to assure this Honourable House that the contractual agreement is very fair to all parties and that each party is adhering to the terms,” he added.
The Sports CS further updated the Senate on the progress of the project, noting that the overall works are currently 87 per cent complete. According to Mvurya, the main stadium structure is at 89 per cent completion, with works ongoing on the spectator terraces, roof covering, waterproofing, and installation of finishing features.
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He added that the outdoor training facilities, including two training pitches and changing rooms, are 82 per cent complete, while external works such as parking bays, access roads, landscaping, and fencing stand at 86 per cent.“I wish to assure this Honourable House that the project shall be completed in time and to the highest standards. Members of this committee are invited to visit the project to enhance their understanding and appreciate the development,” Mvurya said.