The Special Funds Accounts Committee of Parliament has questioned the Tourism Promotion Fund (TPF) over financial management issues, including vehicle purchases and discrepancies raised in audit reports for recent financial years.

The committee, chaired by Fatuma Mohammed, met at Bunge Towers on Thursday, April 23, 2026, to review Auditor-General reports covering the Fund’s financial statements for the 2022/2023 to 2024/2025 financial years.

Tourism Promotion Fund Chief Executive Officer Stephen Kinyanjui appeared before the committee alongside senior management.

Members raised concerns over the purchase of motor vehicles for the Cabinet Secretary, noting that the expenditure appeared outside the Fund’s core mandate of tourism promotion.

The Auditor-General questioned whether the spending aligned with value for money principles and whether it directly supported tourism marketing activities.

“Among the key issues raised by Members was the purchase of motor vehicles worth millions of shillings for the Cabinet Secretary, despite concerns that such expenditure fell outside the Fund’s direct mandate,” a statement from the committee read in part.

Audit queries and financial reporting issues

The Auditor-General’s report also highlighted discrepancies in cash and cash equivalents recorded in the Fund’s financial statements. Kinyanjui attributed the variations to fluctuations in foreign exchange rates between the time funds were received and when conversions were made.

However, audit officials maintained that any gains or losses arising from currency fluctuations should have been properly disclosed in the financial records. Committee members requested detailed explanations and supporting documentation on the reported variances.

The ongoing merger process between the Tourism Promotion Fund and the Tourism Fund was also discussed. The management confirmed that the consolidation followed a Cabinet decision.

Auditors raised concerns regarding clarity on staff placement, asset management, and the future operational mandate of the merged entity.

Governance structure and compliance concerns

The committee directed the Fund’s management to submit full responses to all audit queries and ensure compliance with public finance management requirements. Members emphasised the need for accountability in the use of public resources allocated to tourism development.

The Fund is mandated to support tourism promotion initiatives, including marketing Kenya as a travel destination and supporting sector growth programmes. Lawmakers noted that adherence to mandate-specific expenditure remains central to ensuring efficiency and transparency.

Tourism sector performance and digital reforms

The scrutiny comes as Kenya’s tourism sector continues to implement digital transformation initiatives aimed at improving efficiency and revenue collection.

The Ministry of Tourism has introduced digital payment systems and integrated platforms to streamline transactions across tourism facilities.

The sector recorded significant earnings in 2025, supported by increased international arrivals and domestic tourism activities. Authorities have also focused on expanding digital infrastructure to enhance visitor experience and improve service delivery.

The Special Funds Accounts Committee is expected to review the additional submissions from the Tourism Promotion Fund before presenting its findings to the National Assembly for further consideration.