KICC ownership saga takes new turn as Auditor General report raises questions on disputed land

The question of the real ownership of the Kenyatta International Convention Centre (KICC) has once again been brought to the fore following the release of a new report by the Auditor-General.

The value of the land where KICC sits amounts to Sh2.3 billion. In the latest report for the year ending June 2023, Auditor General Nancy Gathungu disclosed that a restaurant has been erected on the said land, however, it has no title and is under dispute between KICC 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 Jomo Kenyatta's monument stands.

The report indicates: "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."

Gathungu's revelation comes barely a week after MPs summoned officials from the Ministry of Lands and the National Lands Commission (NLC) to appear before it this week to furnish them with details about the real status of the KICC land.

The lawmakers who sit in the National Assembly's Public Investments Committee (PIC) on Energy chaired by Pokot South MP David Pkosing have been arguing that the process of acquiring the title deeds was too slow due to the bureaucratic nature tolerated by the officials from the Lands ministry.

According to the MPs, the NLC is supposed to produce letters of allotment and forward them to the Ministry of Lands to enable them to produce a title deed.

Auditor General Nancy Gathungu. (Photo: OAG)

"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," said Pkosing.

Title revoked

The new KICC land ownership saga is emanating months after the Environment and Land Court ruled that the land belongs to the government, after revoking the title issued to the independent party, the Kenya African National Union (KANU) in May 1969.

In court, Justice Jacqueline Mogeni said that the land was illegally and unlawfully obtained by KANU. She went ahead to give out 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 former President Daniel Arap Moi gave the ownership of the land that was surveyed and allotted for public use.

During contestation over the land, KANU filed the case afresh before the Environment and Land court in 2020 claiming ownership of the land. It sought to reclaim the land saying it was allocated to it in May 1969 by the Commissioner of Lands.

Gathungu's report 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.

For instance, on Long Outstanding Staff Car Loans, the report raises concern over car loans due from former employees amounting to Sh3.6 million which have been outstanding for more than four years.

Furthermore, it also brought to the limelight queries regarding car loans and salary advances amounting to Sh665,240 that were not disclosed

"In the circumstances, the accuracy and recoverability of car loans and salary advance totalling Sh5,957,682 could not be confirmed," reads part of the report.

On unsupported intangible assets, the report raises concern over Sh30 million meant for Enterprise Resource Planning (ERP) upgrade which was not supported.