A new audit has exposed glaring financial and governance failures at the Kenyatta International Convention Centre (KICC), with top management accused of misusing public funds and ignoring key legal and regulatory requirements.

According to the Auditor General’s report for the financial year ending June 30, 2024, KICC’s board of directors spent over Sh30 million on meetings held in luxury hotels, despite regulations requiring such gatherings to be conducted within official premises.

The report notes that nine of the thirteen board meetings during the year were hosted in upscale hotels, in direct contravention of the Mwongozo Code, which governs operations of state corporations.

The Auditor General, Nancy Gathungu, flagged the spending as unlawful, stating that there was no valid justification for the decision to host the meetings offsite. “In the circumstances, the management was in breach of the law,” she noted.

In total, Sh30.9 million was spent on directors’ emoluments, even as unresolved financial concerns from previous audits remained unaddressed.

The audit also revealed that KICC does not hold title deeds for key parcels of land valued at Sh2.3 billion, including the land on which the iconic Centre Tower block stands.

Other unregistered properties include the Comesa Grounds, currently used as a parking lot, and the Garden Square plot, leased to a restaurant.

Despite previous directives from the Public Investments Committee and assurances by the Ministry of Lands that the land is secure, the Auditor General warned that lack of registration leaves the property legally vulnerable and casts doubt on the Sh2.3 billion value declared in the financial statements.

Further scrutiny revealed questionable payments amounting to Sh1.4 billion made to the Ministry of Defense for renovation works. These were not supported by payment certificates or engineer verification documents, raising serious accountability concerns. “The accuracy of the Sh1.4 billion balance could not be confirmed,” the audit noted.

The report also highlighted Sh188 million in stale receivables that have remained uncollected for over two years, with no evidence of a debt recovery strategy in place.

In addition to financial concerns, the center was faulted for failing to comply with the legal requirement to employ persons living with disabilities. As of June 30, 2024, only three individuals in this category were employed at KICC just 3% of the workforce, falling short of the legally mandated 5%.

The audit further flagged underutilization of budgeted resources. Despite recording a Sh1.4 billion revenue surplus, KICC underspent by Sh610 million, a gap the Auditor General said could have undermined the center’s capacity to deliver on its mandate.

Due to the various issues raised, the Auditor General issued a qualified opinion on KICC’s financial statements, citing material misstatements and non-compliance with procurement and governance regulations.