MPs Probe How Bomas of Kenya Land Value Jumped from Ksh76M to Ksh6.4 Billion

The Public Investment Committee on Social Services, Administration and Agriculture (PIC-SSA), chaired Nayakholo MP Emmanuel Wangwe pressed the management of Bomas of Kenya (BOK) over questionable financial practices and weak governance structures flagged in Auditor-General’s reports for the financial years 2019/2020 to 2023/2024.

Appearing before the committee, BOK’s Acting CEO, Jimmy Okidiang, and his team were taken to task on accountability lapses in managing public resources allocated to the cultural institution, which is implementing major national projects.

A major point of contention was BOK’s massive asset revaluation, with land previously valued at Ksh76 million now estimated at Ksh6.4 billion. “How do you explain such a massive jump in asset valuation?” posed HWangwe.

Management attributed the increase to updated property assessments, assuring the Committee that the adjustment would be reflected in the 2024/2025 financial accounts.

The committee also scrutinised the flagship Bomas International Convention Complex (BIC) project, approved by Cabinet in August 2023, to enhance Kenya’s competitiveness against regional rivals like Rwanda and Ethiopia.

The project, which features convention facilities, hotels, a shopping mall, and a sports complex, is expected to deliver its first phase by June 2026 in time to host the French-Africa Summit.

However, MPs raised concerns that BOK management could not provide the total investment figure for the mega project.

“We need concrete numbers on this substantial public investment,” demanded Wangwe.

Okidiang explained that procurement functions for the project were being handled by the Department of Defence, with BOK only playing a coordinating role.

Financial irregularities dominated the session. The Auditor-General flagged a Ksh663 million Work-in-Progress balance unsupported by certificates, to which management admitted that documentation from the State Department for Public Works was still pending.

Procurement violations also drew sharp criticism, including the renewal of a Ksh20 million medical insurance contract without competitive bidding and the purchase of 15 iPads at prices higher than the lowest quotation.

“Why wasn’t competitive bidding followed for these procurements?” pressed Wangwe.

Governance gaps further alarmed the committee.

Okidiang confirmed that he had served as Acting CEO beyond the prescribed six-month limit, with the institution paying irregular acting allowances without Salaries and Remuneration Commission (SRC) approval.

MPs also noted that until recently, BOK lacked essential governance documents such as a Board Charter and annual work plan, relying instead on the Mwongozo Code.

“Why did it take so long to develop proper governance structures?” asked one member. Management responded that a Board Charter has since been adopted.

The committee additionally flagged unresolved issues, including an unpaid Ksj85 million compensation claim for land compulsorily acquired in 2013 and long-standing receivables dating back to 1995 totalling Ksh12,000, which management hopes to write off with National Treasury’s approval.

PIC-SSA directed BOK management to furnish comprehensive documentation, including evidence of irregular expenditures, board approvals, and requisite authorizations from regulatory bodies.

Wangwe underscored the committee’s stance, warning: “Public institutions must be held accountable. We cannot allow continued breaches of law and procedure.”