NAIROBI, Kenya – The Kenyatta International Convention Centre (KICC) is on the spot over a string of financial and governance breaches, including spending millions on luxury hotel board meetings, operating without title deeds for prime land, and making unverified payments to the military, an audit report has revealed.
In her audit for the financial year ending June 30, 2024, Auditor General Nancy Gathungu accused KICC’s management of violating state corporation regulations and risking public assets worth billions.
Among the revelations is that the state corporation spent Sh30.9 million on directors’ emoluments, a portion of which funded nine board meetings held in high-end hotels—contrary to the Mwongozo Code of Governance, which requires state board meetings to be held in official premises unless justified.
“In the circumstances, management was in breach of the law,” Gathungu said, noting no justification was provided for hosting the meetings outside KICC offices.
Missing Land Titles Worth Billions
Even more troubling is that KICC does not possess legal ownership documents for three key parcels of land it occupies, including the iconic tower block, the Comesa Grounds, and Garden Square Restaurant. These properties are valued at Sh2.3 billion.
“The title deed for the property is not registered in KICC’s name, despite its value being included in the financial statements,” the report noted.
This omission leaves the landmark facilities vulnerable to future ownership disputes, despite previous directives by the Public Investments Committee on Commercial Affairs and Energy requiring KICC to regularize land ownership.
While Lands CS Alice Wahome had earlier assured MPs that the land was secure, the Auditor General now warns that the lack of title deeds exposes KICC to legal and financial risk.
Sh1.4 Billion Paid Without Proof
The report also flagged Sh1.4 billion paid to the Ministry of Defence for renovation works, which were not supported by interim payment certificates or engineer-authenticated documents.
“The accuracy of the Sh1.4 billion balance could not be confirmed,” Gathungu said.
The audit further unearthed Sh188 million in stale debts that have remained unpaid for over two years, with no evidence of a recovery strategy from KICC.
Additionally, the centre was found to be non-compliant with the 5 per cent employment quota for Persons Living with Disabilities (PWDs), employing only three staff members (3 per cent of total employees) in that category, violating the Public Service Human Resource Policy, 2016.
Although KICC posted a revenue surplus of Sh1.4 billion, the Auditor General criticized the agency for underspending its budget by Sh610 million, warning that such underutilization could hamper service delivery and long-term planning.
The audit findings now place the iconic state corporation under pressure to explain its governance lapses and financial conduct.
With mounting public debt and scrutiny over public expenditure, watchdog agencies and Parliament are likely to demand accountability over the billions in public funds handled by KICC.
