Kanu’s Sh10.15 billion property empire questioned in auditor’s report

Kanu has been listed among Kenya’s most asset-rich political parties after an audit revealed that it controls land and buildings valued at more than Sh10.15 billion, but concerns have emerged over whether the party can fully account for the ownership and value of the properties.

A report by Auditor General Nancy Gathungu for the financial year ending June 30, 2025, shows that the former ruling party recorded land worth Sh1.95 billion and land and buildings valued at Sh8.20 billion. The combined value places Kanu ahead of many political parties in terms of property ownership.

However, auditors were unable to verify the assets after the party failed to provide documents showing ownership of the properties or reports supporting their valuation.

“However, no ownership documents and valuation reports for the land and buildings were provided for audit review. Further, the buildings were not depreciated in the financial statements,” the Auditor General states in the report.

“In the circumstances, the accuracy, completeness and ownership of the land and buildings totalling Sh10.15 billion could not be confirmed.”

The findings mean auditors could not independently establish whether all the properties listed in the party’s records belong to Kanu or whether the stated values accurately reflect their worth.

Kanu, which governed Kenya from independence in 1963 until its defeat in the 2002 General Election, built up an extensive property portfolio during its years in power. The assets include offices, branch premises, commercial buildings and parcels of land spread across different parts of the country.

Some of the properties linked to the party have over the years attracted ownership disputes and court cases, although many remain under Kanu’s control.

The party was headed by former President Daniel Moi for 24 years after he succeeded founding President Jomo Kenyatta in 1978. It is currently led by Gideon Moi and continues to hold substantial assets despite its reduced political presence.

The audit also questioned the party’s compliance with legal requirements on branch offices. While Kanu initially indicated that it had offices in only five counties, it later submitted a separate list showing branch offices in 24 counties.

Auditors, however, said the party did not provide evidence to confirm the existence of the reported offices.

Under the Political Parties Act, a fully registered political party is required to maintain branch offices in more than half of Kenya’s 47 counties.

The report further identified weaknesses in procurement and financial management practices within the party.

According to the audit, Kanu failed to deduct and remit the mandatory Public Procurement Capacity Building Levy charged at 0.03 per cent on office rent payments. The report shows that the party spent Sh11.62 million on administrative costs during the period under review, including Sh1.63 million paid as office rent, without remitting the required levy.

"This was contrary to Order 3(1) of the Public Procurement Capacity Building Levy Order, 2023," the report states, concluding that the management was in breach of the law.

Auditors also noted that the party had not established a procurement function responsible for overseeing the purchase of goods and services as required under the Public Procurement and Asset Disposal Act and related regulations.