MPs query Sports Fund securitization and AFCON 2027 project costs

The Departmental Committee on Sports and Culture has raised concerns over the government’s plan to securitize the Sports, Arts, and Social Development Fund (SASDF) to finance the multibillion-shilling Talanta Sports City, one of the key facilities earmarked for the 2027 Africa Cup of Nations (AFCON).

The Committee, chaired by Hon. Dan Wanyama, met with the National Treasury's Director General, Mr Lawrence Bet, in charge of Public Investment and Portfolio Management, and Mr. Elijah Mwangi, Principal Secretary for Sports, to deliberate on the status of the proposed securitization and the reallocation of SASDF funds to various semi-autonomous government agencies.

During the session, Hon. Wanyama questioned how the government intends to recover the huge sums being spent on the Talanta Sports City project, warning that the financing structure could become a burden to taxpayers.

He pressed the National Treasury to explain how ordinary Kenyans will benefit from the multi-billion-shilling investment.

Hon. Stephen Mutinda Mule raised issues of accountability, seeking assurances that proper financial management measures are in place to safeguard public funds under the Sports Fund.

In his response, PS Mwangi outlined that the government had already secured approvals from the Treasury, Attorney General, and capital markets to raise over Ksh 42 billion through securitization of the Fund’s cash flows.

He explained that the financing model would spread repayment over 15 years at an interest rate of 7.93 percent, with proceeds directed towards completing Talanta Sports City in time for AFCON 2027.

However, the Committee noted with concern that Parliament had reallocated part of the SASDF budget—over Ksh 2.9 billion—to user agencies that had not submitted funding requests as required by law.

The MPs resolved to demand a detailed cost-benefit analysis from the National Treasury, as well as quarterly accountability reports from the SASDF Oversight Board, before further funds are committed.