- Auditor General Nancy Gathungu said title to the 28-story building was not registered in the name of KICC, which is a crown corporation under the Ministry of Tourism.
- But the identity of the person or entity in whose name the title to the land, which is valued at 2.29 billion shillings, is recorded, is not disclosed in the public auditor’s report. for 2018/19.
Ownership of the land on which Nairobi’s iconic Kenyatta International Convention Center (KICC) building sits is uncertain after an audit found that the plot does not belong to the state-owned company that manages the complex.
Auditor General Nancy Gathungu said title to the 28-story building was not registered in the name of KICC, which is a crown corporation under the Ministry of Tourism.
But the identity of the person or entity in whose name the title to the land, which is valued at 2.29 billion shillings, is recorded, is not disclosed in the public auditor’s report. for 2018/19.
“It was also noted that the land on which the Kenyatta International Convention Center building sits is not registered in the name of the company although its value has been included in the financial statements,” she said.
Title deeds are essential documents that show ownership of land or buildings. The absence of this crucial document exposed main government lands, including those owned by crown corporations and utilities such as schools, to the risk of invasion by private developers.
Ms Gathungu’s latest revelation reignites a two-decade-old dispute over ownership of the iconic building, which the former ruling Kanu party claims to be among its assets.
Kanu, who was kicked out of KICC in 2013 by what Tourism and Information Minister Raphael Tuju called an executive decree, continued to list the property as one of his assets in documents filed with the registrar. political parties.
Kanu general secretary Nick Salat claimed in 2012 that the party had title to the building and listed it among its assets.
The party listed buildings worth 4.5 billion shillings and short-term assets of 1.5 billion shillings in its statements.
Commissioned 54 years ago, KICC has become Africa’s premier destination for conferences and tourism exhibitions
The conference center has been transformed into a parastatal under the Ministry of Tourism and renovated with money from the Treasury.
It houses several government offices, including those of senators.
During KICC’s last audit, Ms. Gathungu found that the state-owned company had not included the parking lot as part of its land in its financial statements.
The courtyard on which stands the monument to Kenya’s first President Jomo Kenyatta is also missing from the KICC books, deepening the mystery of land ownership.
“In addition, the land on which the Garden Square restaurant sits is the subject of a dispute between the KICC and the Nairobi County government,” she said.
Ms Gathungu said that despite a letter from Chief of Staff and Civil Service Chief Joseph Kinyua to the Secretary of the Land Cabinet stating that the disputed land had since been classified as a national monument and part of the KICC, leadership no. had not acquired any constitutive title.
“In addition, the Cabinet Secretary was ordered to urgently issue property documents to the company. Notwithstanding the foregoing, management has not provided any proof that these title deeds have been acquired ”, indicates the audit report.
The valuation of KICC’s assets carried out in 2019 reported a value of 4.04 billion shillings for property, plant and equipment.
He valued the 28-story building at 1,664,800,000 shillings, while the freehold land on KICC parking lots was valued at 2.296 billion shillings at the end of June 2019.
The value of furniture was Sh21.5 million and that of office equipment Sh55.3 million.
Ms. Gathungu said the valuation amounts as detailed in KICC’s financial statements for four asset classes differ from the valuation report amounts of 1.3 billion shillings.
“The expert, who had received a total of 7.6 million shillings, did not give a detailed report on how the appraisal was undertaken and why the appraisal, in particular the land and buildings in question. freehold, appears to be undervalued compared to current market values, ”says the Auditor General.