KICC Ownership Saga Persists Amid Auditor-General’s Concerns

The ownership saga surrounding the Kenyatta International Convention Centre (KICC) in Nairobi continues to unfold as the Auditor-General, Nancy Gathungu, raises yet another alarm over the accuracy and ownership of the land valued at KSh 2.3 billion on which the KICC is situated. This ongoing issue casts a shadow on the management of one of Kenya’s most iconic landmarks, underscoring the complexities of land ownership and bureaucratic processes in the country.

In the latest report for the fiscal year ending June 2023, Auditor-General Gathungu highlighted concerns about encroachment by a restaurant on the disputed land, which lacks a proper title. The dispute over ownership exists between the KICC and the Nairobi County Government. It is worth noting that the contested freehold land does not include areas commonly referred to as the COMESA Parking area and the courtyard housing the monument of Kenya’s first president.

The Auditor-General’s report states, “As previously reported, the statement of financial position reflects property, plant and equipment totalling KSh 4,013,298,206. The amount includes freehold land amounting to KSh 2,296,000,000 as disclosed in Note 15 to the financial statements. In the circumstances, the accuracy and ownership of the freehold land amounting to KSh 2,296,000,000 could not be confirmed.”

The concerns outlined in the report have prompted action from lawmakers. The National Assembly’s Public Investments Committee (PIC) on Energy, chaired by Pokot South MP David Pkosing, has summoned the Ministry of Lands and the National Lands Commission (NLC) to provide details about the status of the KICC land. The committee expressed frustration over the slow pace of acquiring the necessary title deeds due to bureaucratic hurdles posed by the two departments.

MP Pkosing stated, “Next week, the Ministry should be able to tell us why it has taken them this long to present the title deed. NLC should also appear before them to explain to members why it appears to be an impediment in ensuring that the KICC land remains with Kenyans.”

The ownership controversy is further complicated by a recent ruling from the Environment and Land Court, which declared that the land belongs to the government. This ruling came after the court revoked the title deed issued to the Kenya African National Union (KANU) in May 1969. Justice Jacqueline Mogeni argued that the land was illegally and unlawfully acquired by KANU, the then-ruling party, and affirmed that the Ministry of Tourism is the rightful owner of the land. “The allocation of the property to KANU without following legal procedure is unlawful and illegal,” Justice Mogeni asserted.

In addition to the land ownership issues, the Auditor-General’s report raises concerns about several financial matters within the KICC. The report highlights long outstanding staff car loans, long-standing payables, unsupported property, plant, and equipment, as well as unresolved matters from prior years.

One of the significant financial issues raised is the long outstanding staff car loans amounting to KSh 3.6 million, which have remained unpaid for more than four years. Furthermore, the report questions the lack of disclosure of car loans and salary advances amounting to KSh 665,240. In total, the report indicates, “In the circumstances, the accuracy and recoverability of car loans and salary advance totalling KSh 5,957,682 could not be confirmed.”

Additionally, concerns were raised regarding unsupported intangible assets worth KSh 30 million, earmarked for an Enterprise Resource Planning (ERP) upgrade. “In the circumstances, the accuracy of intangible assets totalling KSh 30,843,892 could not be confirmed,” the report reads. Moreover, the report highlights long outstanding trade and other payables amounting to KSh 103.5 million, which have been pending for over 11 years.

The unfolding events surrounding the KICC ownership saga reflect deeper systemic challenges in Kenya’s land and financial management sectors. As stakeholders await clarity from the Ministry of Lands and the NLC, the resolution of these issues remains crucial for safeguarding national assets and ensuring transparent governance.