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Kenya’s iconic international conference center brought down by reports of mounting debt running over $4 million

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  • Kenya’s iconic international conference center (KICC) is staring at the risk of being auctioned over mounting debts running over $4 million debt.
  • The management of KICC may have decided to disregard the Presidential order since less than three days remain before the end of the current financial year and no payment is forthcoming according to the suppliers.
  • The management of (KICC) now risks losing millions of shillings in court awards. 

Kenya’s iconic international conference center (KICC) is staring at the risk of being auctioned over mounting debts running over $4 million debt.

Years after supplying goods and services to the international conference center to facilitate its numerous meetings the management of KICC has left suppliers high and dry leaving them with no option but to head to court to try and recoup their losses.

“We are heading to court to ensure that we get our [money] paid for the works we did plus interest accrued. The fact that the corporation has lost money before through such penalties could be the ‘motivation’ to disregard the President’s order,” said a supplier, who did not want to be named.


KICC CEO Nana Gecaga

This is despite President Kenyatta’s directive that the state agency alongside other national government agencies and county governments that have pending bills with no audit queries be promptly be paid by end of this month.

While leading the country in commemorating the 56th Madaraka Day in Narok, President Kenyatta issued a directive that all pending bills be cleared before the end of the current financial year.

The directive was followed by a Treasury memo to all ministries, departments and other agencies and county governments ordering them to clear the audited pending bills so that the money could be wired to the accounts of the suppliers and contractors.


President Uhuru Kenyatta during the 54th Madaraka Day celebrations in Nyeri county. This year’s celebrations will be mared in Narok

But it seems the management of KICC may have decided to disregard the Presidential order since less than three days remain before the end of the current financial year and no payment is forthcoming according to the suppliers.

The management of (KICC) now risks losing millions of shillings in court awards. 

Auditor-General Edward Ouko has already warned that KICC risks having its assets auctioned if the bills are not settled.


Auditor-General Edward Ouko

In a special audit report before the National Assembly, Mr. Ouko notes that the claimants have valid contracts, LPOs, LSOs and award letters, and goods and services were delivered, with confirmation of works done.

“We recommend payment of various contractors, suppliers and service providers. The corporation risks its assets being attached in the event that the claims are not settled as most claimants have contracts,” Mr. Ouko says.

Suppliers to the tenth World Trade Organization (WTO) ministerial conference, held in Nairobi from December 15-19, 2015, are yet to be paid Sh175.5 million ($1.755 million) while other contractors and suppliers are owed Sh211.4 million ($2.114 million) for laying of new cabro pavements and refurbishment works, among others.


Reuters


The Kenyan Foreign Affairs Cabinet Secretary Amina Mohamed (L) and the Director General of the World Trade Organization (WTO) Roberto Azevedo attend the opening of the World Trade Organization (WTO) Summit in Nairobi, Kenya December 15, 2015. REUTERS/Noor Khamis