KICC ownership saga persists as queries emerge
Auditor-General Nancy Gathungu has yet again raised concerns over the accuracy and ownership of land amounting to Sh2.3 billion where Kenyatta International Convention Centre (KICC) sits on.
In the latest report for the year ending June 2023, Gathungu regretted that a restaurant had encroached on the said land yet it has no title and is disputed between the Centre and the County Government of Nairobi.
The freehold land amount excludes land commonly referred to as the COMESA Parking area and the courtyard on which the first Kenya President’s monument stands.
Reads the report: “As previously reported, the statement of financial position reflects property, plant and equipment totalling Sh4,013,298,206. The amount includes freehold land amounting to Sh2,296,000,000 as disclosed in Note 15 to the financial statements. In the circumstances, the accuracy and ownership of the freehold land amounting to Sh2,296,000,000 could not be confirmed.”
The move comes hardly a week after lawmakers summoned both the Ministry of Lands and the National Lands Commission (NLC) to appear before it this week to furnish them with details about the status of the KICC land.
The MPs who sit in the National Assembly’s Public Investments Committee (PIC) on Energy chaired by Pokot South MP David Pkosing claimed that the process of acquiring the title deeds was too slow due to bureaucracies and barriers emanating from the two departments. NLC is supposed to produce letters of allotment and forward them to the Ministry of Lands to enable them to produce a title deed.
Said Pksoing: “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.”
Belongs to State
The intrigues surrounding the KICC land come months after the Environment and Land Court ruled that the land belongs to the government, after revoking the title 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 independent party.
She further issued a declaration that the Ministry of Tourism is the lawful owner of the land.
“The allocation of the property to Kanu without following legal procedure is unlawful and illegal,” she said.
She questioned how late President Daniel Arap Moi was allocated the land that was surveyed and allotted for public use.
Kanu filed the case before the Environment and land court in 2020. It sought to reclaim the land saying it was allocated to it in May 1969 by the Commissioner of Lands.
The report has also raised questions regarding Long Outstanding Staff Car Loans, long outstanding payables, unsupported Property, Plant and Equipment, as well as unresolved prior year matters which were yet to be dealt with.
Outstanding loans
On Long Outstanding Staff Car Loans, the report raises concerns over car loans due from former employees amounting to Sh3.6 million which have been outstanding for more than four years.
Further, it also raised questions regarding car loans and salary advances amounting to Sh665,240 that were not disclosed
Reads the report: “In the circumstances, the accuracy and recoverability of car loans and salary advance totalling Sh 5,957,682 could not be confirmed. “
On unsupported Intangible assets, the report raises concerns over Sh 30 million meant for Enterprise Resource Planning (ERP) upgrade which was not supported.
Reads the report: “In the circumstances, the accuracy of intangible asset totalling Kshs.30,843,892 could not be confirmed.”
On Long Outstanding Trade and Other Payables, the report raises concerns over Sh 103.5 million which has been outstanding for over 11 years.