This archive report was first published on 9 October 2019.
Published on October 9, 2019, an audit report has revealed that the office of retired President Mwai Kibaki defaulted on rent amounting to Sh36 million at the Kenyatta International Convention Centre (KICC) in Nairobi.
The audit, which covered the period from 2013 to 2018, showed that Kibaki's private secretary's office failed to pay rent for the three years it was domiciled on the 18th floor of KICC.
Prof Nick Wanjohi served as Kibaki's private secretary between 2012 and 2017. Despite the government purchasing an office block in Nyari Estate, Nairobi, for Sh250 million in 2013, Kibaki's office continued to occupy space at KICC.
The Auditor-General's office informed Parliament that KICC failed to provide the tenancy agreement for the space, and the accumulated rent arrears of Sh36 million was unlikely to be recovered due to lack of budget allocation for leasing office space.
According to the audit report, the corporation's 18th floor was occupied by Kibaki's private secretary from July 1, 2013, to July 1, 2016, accruing a total debt of Sh36,092,972. The likelihood of recovering the debt was deemed doubtful.
The audit also highlighted KICC's weakness in collecting debt, particularly rent from State agencies that have occupied space in the iconic building. The corporation is owed Sh908,062,000, with Sh696,789,911 remaining outstanding for more than three years.
The bulk of the debt is owed by various government ministries and departments, including the National Assembly, which owes Sh47,311,344.
Furthermore, the audit report raised concerns over KICC's management failure to recover outstanding debts from staff who have since left the organisation. The corporation advanced staff car loans and other advances amounting to Sh10,350,000 in the year to June 2018, but some staff left without being cleared.
