Kenya explains Sh10.85bn rise in Talanta Stadium project cost

Kenya’s government has attributed the Sh10.85 billion increase in the Talanta Sports City project to taxes and other charges left out of the original estimate. The project, which includes the 60,000-capacity Talanta Stadium, was initially valued at Sh35 billion but is now listed at Sh45.85 billion.

The stadium has since been named Raila Odinga Stadium. Sports Principal Secretary Elijah Mwangi said the first figure came from a concept prepared by the University of Nairobi Enterprise Services, rather than a final cost for construction under a contractor.

Mwangi said the initial design estimate did not include obligations that arose when the government chose to hire a contractor. These included VAT, withholding tax, freight and customs clearance costs for imported materials and equipment. He said the difference reflected those additions rather than an increase caused by inflated construction costs.

The explanation follows audit findings released in February 2026, which questioned the project’s rising price and procurement process. Auditor-General Nancy Gathungu raised concerns about the award of the tender to Linzi Finco LLP, saying the process did not comply with the Public Procurement and Asset Disposal Act. She also said her office had not been consulted for clearance.

The project could face another increase if delayed payments to Linzi Finco attract interest. Gathungu warned that the contractor could charge interest at three percentage points above the Central Bank of Kenya’s average lending rate of 14.3 per cent. That would place the possible rate at about 17 per cent, adding further pressure to the cost of the stadium project.