KDF projects worth Sh22 billion stall as contractors abandon sites

Currently, KDF is overseeing the construction of the 60,000-seat Talanta Sports Stadium in Nairobi at a cost of Sh45 billion, set to host games for the 2027 Africa Cup of Nations alongside Tanzania and Uganda.
Several Kenya Defence Forces (KDF) projects valued at Sh22 billion are facing major delays after contractors reportedly abandoned the works, raising concerns over wasted public funds and unfinished infrastructure.
Auditor-General Nancy Gathungu revealed in a report to Parliament that Sh3.2 billion had already been spent before the projects stalled.
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The audit, covering the national government’s 2023/24 accounts, warns that the halted projects may cost more than originally budgeted and highlights the risk of losing the funds already invested.
The reasons behind contractors leaving the sites in Marsabit, Lamu, and Nairobi remain unclear.
“Physical verification carried out in October and December of 2024 revealed that the respective contractors were not on site and no work was ongoing,” the report states.
The KDF management has also not outlined measures to revive or complete the stalled projects.
Among the affected works is the Sh18.9 billion Level 6 Flagship Forces Referral and Research Hospital (FRRH) in Nairobi.
Designed as a specialised medical and training facility for security personnel and their dependants, the hospital had reached only 20 percent completion by December 2024, with Sh16 billion of the contract still unpaid.
Other stalled projects include the Sh2.81 billion permanent headquarters for the 23rd Mechanized Infantry Battalion in Marsabit and the 8th Brigade in Lamu, which had only advanced 20 percent after the Ministry of Defence disbursed Sh175 million.
In addition, a six-month, Sh238.2 million project to construct a 4.2-kilometre access road was 60 percent complete by December 2024, leaving Sh148 million unpaid. The audit further notes that there was no evidence showing contractors renewed their performance bonds.
KDF, however, has a history of completing major projects successfully, including the Sh1.23 billion Level 4 police hospital in Mbagathi, Nairobi, which was finished in the 2022/23 financial year to improve healthcare for officers on the frontlines.
The military has also been credited with reviving the Kenya Meat Commission and upgrading the Kenyatta International Convention Centre.
Currently, KDF is overseeing the construction of the 60,000-seat Talanta Sports Stadium in Nairobi at a cost of Sh45 billion, set to host games for the 2027 Africa Cup of Nations alongside Tanzania and Uganda.
Efforts to resume stalled projects are underway. On March 17, 2025, Defence Principal Secretary Patrick Mariru and Ministry of Health officials met with President Apollo Hospitals Group International Dinesh Madhavan at the Defence Headquarters to discuss partnerships for completing, equipping, and running the KDF Level 6 FRRH.
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