MPs launch inquiry into discrepancies in Kenya Academy of Sports contract

Members of Parliament have launched an investigation into the financial management of the Kenya Academy of Sports (KAS), following alarming discrepancies identified in the Auditor-General's reports.

The inquiry centres on the multimillion-shilling contract for the International Sports Centre in Kasarani, where suspicions of inflated costs have emerged.

The National Assembly's Public Investments Committee, chaired by Navakholo MP Emmanuel Wangwe, expressed concerns over the project's cost, which soared from an initial Sh859,814,770 to Sh1.03 billion.

Wangwe highlighted the need for a comprehensive inquiry.

"I feel we need to open a full inquiry into the project so that we get the actual cost of the project," he stated.

He further announced plans to summon all relevant parties for testimony.

Auditor-General Nancy Gathungu flagged the project, questioning how payments exceeded the agreed contract sum.

As of June 2019, KAS had paid a total of Sh1,036,445,457, resulting in an overpayment of Sh176,630,687, while the project was reported to be only 90 per cent complete.

"Under the circumstances, the validity of the contract variation could not be confirmed," Gathungu noted

The project includes the construction of a two-floor hostel, multiple sports pitches, and a borehole. Initially managed by the Sports Stadia Management Board, the mandate was later transferred to KAS.

Kasarani Stadium in Nairobi. (Photo: Handout)

During a committee session on Tuesday, KAS CEO Doreen Odhiambo revealed challenges in obtaining necessary documentation from Sports Kenya, acknowledging irregularities in payment procedures without proper bills of quantities.

"We must treat this organisation as hostile. There are documents they are hiding from us," said Suna West MP Peter Masara, highlighting the need for transparency in the financial dealings.

Odhiambo explained that the contractor's fee was omitted from the initial budget, contributing to the unexpected cost increases.

She attributed the Academy's recent revenue shortfall of Sh2,375,000 to early operational expenditures incurred by Sports Kenya before KAS was authorised to manage its own funds.

Despite receiving direct funding from the National Treasury after its initial quarters, KAS underspent its total budget by Sh215,628, and certain budget lines saw overspending ranging from 100 per cent to 250 per cent, primarily due to employee costs and board meeting expenses.

"Salary top-ups for deployed Ministry staff and frequent board meetings contributed to the overspend," Odhiambo stated.

Concerns over project delays were also raised, with the sports academy project, initially contracted in March 2013 and due for completion in March 2016, only 85 per cent complete by March 2019, despite Sh877,374,598 already paid.

MP Martin Owino supported the call for a full inquiry, stressing the importance of getting to the root of the matter.

"For us to get to the bottom of this matter, the inquiry route will either implicate or exonerate everybody," he affirmed.

Odhiambo welcomed the inquiry initiative, agreeing that all parties involved should be invited to clarify the academy's financial management and the ongoing issues surrounding the sports centre project.