Auditor-General Nancy Gathungu has raised serious concerns over the Sh41.9 billion Bomas of Kenya renovation project, highlighting that its procurement was conducted illegally and outside standard procedures.
The revelations, presented in Parliament alongside the Ministry of Defence’s audited accounts, expose Principal Secretary Patrick Mariru to potential sanctions for violating procurement laws and committing funds without prior authorization by the National Assembly.
The audit report states that Mariru approved direct procurement on February 17, 2025, even though the tender process had already started, with invitation documents and site inspections dated February 13 and 14, 2025.
“This was contrary to the Public Procurement and Asset Disposal Act of 2015,” the report notes.
“In the circumstances, the Management was in breach of the law and the government is likely to incur penalties and charges where there is a delay in making payments.”
The renovations are intended to transform the facility into the Bomas International Convention Centre (BICC), increasing its seating capacity to 11,000. According to Section 69 (2) of the procurement law, approvals cannot be applied retrospectively, except in urgent situations.
Former Tourism Fund Board of Trustees chairperson Samson Some clarified that part of the renovations, known as Phase II, is being financed through a Public-Private Partnership (PPP) model funded by Tourism Fund collections.
“A percentage of our levy collection will be committed annually by the fund as a repayment to the people who are investing in the project,” he said, emphasizing that private sector funding allowed the facility to become operational without delay.
Some also addressed claims by former Deputy President Rigathi Gachagua that the cultural centre had been sold to a foreign entity, calling the allegation false.
“What the government was very clear about is that by mobilising private sector money, we could get this facility available to the industry immediately,” he explained.
The audit further noted discrepancies between the contract and the approved financing. While the agreement outlined a nine-installment repayment plan over 24 months, the National Treasury had approved a 10-year deferred payment schedule, which conflicts with the contract.
Originally, the procurement was to be managed by the State Department for Culture, Arts and Heritage, led by Principal Secretary Ummi Bashir, but responsibility was later shifted to the Ministry of Defence for the design, construction, and equipping of the project.
