Auditor General Nancy Gathungu has raised concerns over the performance of Bomas of Kenya, which she says is in the red. In a report for the year ending June 2024, the Auditor General raised concerns that the statement of financial position of the facility reflects current assets and liabilities balances of Sh238,877,245 and Sh289,018,465 respectively, resulting in a negative working capital of Sh50,141,220.
“The Organisation may be technically insolvent and therefore unable to meet its financial obligations as and when they fall due on the basis of the negative working capital position,” the report reads.
In the report tabled before the National Assembly, Gathungu (left) said although the assets, property and plant stands at Sh2.4 billion, she regretted that the last valuation for the assets was conducted in 1996.
The long delay, she said, fails to take cognisance of the drastic change in the value of the assets and is contrary to international accounting standards.
She further raised concerns that physical verification carried out in December 2024 revealed that several assets were not tagged and serial numbers of some printers, desktops, laptops and other electrical and electronic equipment were not indicated in the assets register for ease of identification and tracking.
The revelation by Gathungu comes hardly days after the government dismissed claims by former Deputy President Rigathi Gachagua that Bomas of Kenya has been sold to a Turkish national, saying the facility is undergoing modernisation to become a global conference and cultural hub.
Gachagua alleged that the government institution had been sold to a Turkish national despite his objections during a cabinet meeting when he served as deputy president.
But the Gender, Culture, Arts and Heritage ministry, Principal Secretary Ummi Bashir said Bomas has not been sold, its ownership remains unchanged noting the facility remains public property.
In her report, Gathungu also raised concerns over a number of issues including delays in completion of rehabilitation of the auditorium, employees being in acting position in excess of six months, failure to implement Integrated Personnel Payroll Data (IPPD) and irregular composition of council committee members.
