Ghost Stadiums, Missing Millions: Inside the Ksh330M 2018 CHAN Scandal

2018 CHAN; Former Sports Principal Secretary Peter Kaberia and five other suspects were taken into custody regarding an irregular Ksh1.5 billion stadium upgrade contract linked to the 2018 CHAN tournament. The Kenyan sports fraternity was hit by major news following fresh legal action by the Ethics and Anti-Corruption Commission (EACC).

The Background of the 2018 CHAN Project

The scandal traces back to 2017 when Kenya was preparing to host the African Nations Championship (CHAN). To meet international tournament standards, the Ministry of Sports embarked on modernizing local facilities, including installing security, access control, pitch lighting, and audio-visual equipment.

The State Department for Sports Development awarded a massive USD 15.89 million (approx. Ksh1.5 billion) tender to Auditel Kenya. However, anti-graft detectives later discovered that the contract was completely single-sourced, lacked the required bid security, and bypassed essential public procurement standards.

How the Ksh330M Was Lost

Despite clear red flags during procurement, an advance payment of USD 3.15 million (about Ksh330 million) was wired to the contractor. Detectives from the EACC noted that these funds were paid out without a valid milestone completion certificate showing that any actual work was done.

Rather than executing the requested installations, the contractor failed to fulfill its contractual duties. Investigators tracked the funds through a complex web of intermediate corporate entities created to move money and attempt to disguise the true source of the funds before routing them back into domestic accounts. The failure to deliver the required venue upgrades ultimately led to Kenya losing its hosting rights for the 2018 CHAN.

Mass Arrests and High-Profile Charges

Following a detailed inquiry file submission, the Director of Public Prosecutions (ODPP) independently evaluated the evidence and authorized formal prosecution against 10 individuals and six corporate entities.

Former PS Kaberia, along with senior finance, accounting, and engineering officers from the ministry, now face multiple criminal counts. These charges include conspiracy to commit an economic crime, abuse of office, money laundering, unlawful acquisition of public property, and failure to observe public procurement laws. While the suspects face arraignment before the Anti-Corruption Court in Milimani, civil proceedings are also underway to recover and forfeit the missing millions back to the public.

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