The future of the Kenya Cultural Centre, which runs the Kenya National Theatre and has for decades served as a key hub for artistic expression in Nairobi, is now in doubt after lawmakers raised concerns over its financial stability, governance gaps, and unresolved legal and asset issues.
The concerns emerged when Chief Executive Officer Michael Pundoon Wednesday appeared before the Public Investments Committee on Social Services, Administration and Agriculture (PICSSAA) to respond to audit findings that point to serious financial strain and long-standing structural weaknesses within the institution.
By June 30, 2025, the Centre had recorded a negative working capital of Sh 14.3 million. Its total expenditure stood at Sh 402.7 million against revenues of Sh 390.6 million. Audit reports covering more than a decade show a steady accumulation of financial challenges that have now placed the institution in a difficult position in the 2024/2025 financial year.
The Auditor General’s report warned that the Centre is now technically insolvent, raising concerns over its ability to meet its financial obligations as they fall due.
In response to MPs, Pundo said the deficit was due to “prevailing financial constraints” and noted that discussions are ongoing with the National Treasury to secure more stable funding for the institution.
Attention also shifted to the Centre’s assets, particularly its land and buildings located in Nairobi’s central area.
According to the Auditor General, the institution has, for more than a decade, failed to provide ownership documents for freehold land and buildings valued at Sh 200 million based on a 2014 valuation. These include the Kenya National Theatre and adjoining parking areas, which remain key public assets whose legal status is unclear.
By late 2025, the Centre had also not produced an updated valuation report to support a revised figure of Sh 333.9 million, with management citing delays from the Ministry of Public Works.
The audit further highlighted a long-running dispute involving the Kenya Conservatoire of Music. A lease agreement signed in 1961 required the Conservatoire to pay rent for a wing within the Centre. However, rent for an 18-year period between 1960 and 1978, amounting to Sh 248,400 remains unpaid.
Pundo told the committee that they are seeking legal advice from the Attorney General to resolve the matter, which has remained unsettled for more than four decades.
Beyond financial and asset issues, MPs were also informed of deeper governance problems. The Auditor General noted that the Centre still operates under the Kenya Cultural Centre Act of 1951, describing it as outdated and no longer suitable for modern governance needs.
Pundo said efforts to replace the law have stalled due to lack of funding for public participation on the draft Bill.
Staffing levels also remain a concern. The report shows that the Centre is operating at only 45 percent of its approved establishment, with 39 employees against a required 86. In some departments, a single officer handles entire functions, raising concerns about internal controls and service delivery.
Members of the committee, led by Vice Chairperson Caleb Amisi, directed the management to develop a clear plan to improve efficiency while seeking additional government support.
The questions now facing the Kenya Cultural Centre go beyond audit queries. They touch on its long-term survival and whether one of Kenya’s most iconic cultural institutions can withstand its financial, legal, and governance pressures while adapting to current demands.