Several Kenya Defence Forces (KDF) projects worth Sh22 billion have stalled after contractors abandoned them, according to a reported presented to Parliament by the Auditor-General Nancy Gathungu. By the time the projects stalled, Sh3.2 billion of public funds had already been spent. Ms. Gathungu questioned the value of the investment.
These revelations are included in the audit report on the national government’s accounts for the 2023/24 financial year. The report raises fears that the funds already invested in the projects may be lost. At the same time, there are concerns that the projects may cost taxpayers more than was budgeted.
It is unclear why contractors abandoned the KDF capital projects in Marsabit, Lamu, and Nairobi well past their expected completion dates. “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 audit report said.
“The management did not disclose the measures being implemented, if any, to revive and complete the stalled projects,” the report said.
The affected projects include the Sh18.9 billion Level 6 Flagship Forces Referral and Research Hospital (FRRH), a specialised hospital in Nairobi. Initiated in 2022, it was expected to be completed within three years.
The others are the Sh2.81 billion permanent camp for the 8th Brigade Headquarters and the 23rd Mechanized Infantry Battalion (MIB) and the Sh238.2 million improvement of a 4.2-kilometre road, a six-month contract initiated on June 21, 2022.
The audit report states, “Evidence that the contractors renewed their performance bonds was not provided for review.”
KDF has a reputation for success stories, such as the supervision of the Sh1.23 billion police hospital in Nairobi’s Mbagathi area, which was successfully completed. The Level 4 hospital was completed in the 2022/23 financial year.
It was designed to provide critical and specialised healthcare to NPS officers across the country, especially those on the frontlines, to improve their welfare.
KDF is also known for improving the management of the Kenya Meat Commission (KMC) after years of decline, as well as for renovating the Kenyatta International Convention Centre (KICC).
Currently, KDF is overseeing the construction of Kenya’s premier sports facility: the 60,000-seat Talanta Sports Stadium in Nairobi, which will cost Sh45 billion. The stadium is expected to host several matches for the 2027 Africa Cup of Nations, that Kenya, Tanzania, and Uganda will co-host.
Ongoing construction of Talanta Sports City Stadium in Nairobi on January 23, 2025.
Photo credit: Sila Kiplagat | Nation Media Group
The stalled KDF hospital was envisioned as a specialised facility for Kenyan security agencies and their dependants. It was also intended to serve as a national and regional medical referral, training, and research centre of excellence.
According to the audit, the contract for the hospital’s construction was signed on January 18, 2022. The completion date was January 18 of this year. By the end of the 2023/24 fiscal year, the Ministry of Defence had disbursed Sh2.9 billion toward the project.
However, by December 2024, officers from the Office of the Auditor-General recorded a mere 20 per cent completion rate, with an outstanding contract sum of Sh16 billion. It is unclear whether the ministry disbursed any money to the project in the preceding fiscal year.
Ongoing construction of Talanta Sports City Stadium on January 23,2025.
Photo credit: Sila Kiplagat | Nation Media Group
On December 14, 2021, the KDF also signed a contract for Sh2.81 billion to establish permanent headquarters for 23 MIB at Idido Forward Operating Base in Marsabit. The same contract covered the proposed permanent headquarters of the 8th Brigade in Lamu County. The two projects were to be completed on or by August 14, 2023. However, when an inspection was conducted in December last year, the two projects were only 20 percent done after the ministry disbursed Sh175 million with an outstanding contract sum of Sh2.63 billion.
In June 2022, the Ministry of Defence also signed a six-month contract to establish a 4.2-kilometre access road.
The project was to be completed on or before December 21, 2022, but it was 60 percent complete after the Ministry of Defence disbursed Sh90 million, with Sh148 million in outstanding contract amount.
Defence PS Patrick Mariru.
On March 17, 2025, Defence Principal Secretary Patrick Mariru and officials from the Ministry of Health held a meeting with the President Apollo Hospitals Group International Mr Dinesh Madhavan, at the Defense Headquarters in Nairobi to explore collaborations in healthcare services.
This included the completion, equipping, and running of the KDF level 6 FRRH.
