The Kenya School of Government (KSG) has not obtained title deeds for six prime parcels of land valued at Sh1.7 billion despite the court revoking allocations to private developers.
Auditor-General Nancy Gathungu says the KSG has excluded in its books of accounts six parcels of land valued at Sh1,677,336,407 located at lower Kabete that were hived off and allocated to private individuals.
“Although available information indicates that these allocations have since been revoked by a court of law, the School has not obtained the respective ownership documents for the six parcels of land,” Ms Gathungu said in the audit of KSG's books of accounts for the year to June 2024.
Ms Gathungu also raised the red flag over the lack of ownership documents for freehold parcels of land valued at Sh783.7 million.
She said the management of KSG indicated that the freehold parcels of land owned by the School belong to the Mombasa and Matuga Campuses.
Ms Gathungu said the KSG did not provide title deeds for the Mombasa and Matuga Campuses' land for audit review.
“In addition, review of documents at Matuga Campus revealed that there were 138 illegal allottees on the parcels of land where 13 have been issued with title deeds and 61 have been discharged,” Ms Gathungu said in a report tabled in Parliament.
“Further, the fixed assets register maintained by the School for the Mombasa and Matuga Campus did not have information detailing the assets description, cost, date of acquisition, location, and depreciation charge for the year, accumulated depreciation and net book value of the assets.”
Ms Gathungu said in the circumstances, the accuracy, ownership and completeness of the non-current assets balance of Sh9 billion outlined in KSG's books of accounts for the year ended June 30, 2024, could not be confirmed.
Ms Gathungu also questioned the failure by the KSG to complete several stalled projects that it awarded to contractors over five years ago.
She said KSG entered into a contract on July 14, 2020, for the construction of a tuition block at Baringo Campus at a cost of Sh623474,422.
The works were to be completed in 130 weeks, starting from July 30, 2020 and ending on December 29, 2022.
“However, a site visit conducted in the month of November, 2024 revealed that no works had been carried out in the year under review and the contractor was not on site,” Ms Gathungu said.
“Further, the status of the project completion report in the financial statements indicates that the project was at 22 percent complete with a total expended amount of Sh134,892,648.”
Ms Gathungu also flagged the contract for the proposed completion works for the Deputy Director’s house at Baringo Campus, which was awarded in 2014 for Sh4.43 million.
She said based on the contract, the construction was to be completed by September 2016, but a site visit carried out in November 2024 revealed that the contractor had abandoned the site in 2017 due to non-payment of certified works valued at Sh2 million.
Ms Gathungu said the construction of the Embu Campus tuition block, which was awarded on June 29, 2020, at a sum of Sh1.1 billion, had stalled at approximately 50 percent completion as at November 27, 2024.
In Matuga, Ms Gathungu said the construction of the tuition block was awarded at a contract price of Sh745 million for a period of 156 weeks, commencing on July 7, 2020 and ending on July 7, 2023.
“During the year under review, the contract completion date was extended to February 2025. However, review of the progress report and physical inspection carried out in the month of November, 2024, revealed that although the contractor was on site, the project remains incomplete at 36 percent to completion and it is evident that the project cannot be completed within the remaining contract period,” Ms Gathungu said.
