The management of the Kenyatta International Convention Centre (KICC) is facing a financial crisis after it emerged that it has not settled debts amounting to Sh390 million.
The firm now risks auctioning as various suppliers demand their arrears with less than three days to mark the end of the financial year.
Before the new development, Auditor-General Edward Ouko had cautioned the management of the debt. The management is expected to comply with President Uhuru Kenyatta’s direction to all government agencies to settle their pending bills before the end of June.
The President, who is completing his second and final term in office, issued the directive to the management in a bid to avoid any form of audit queries that could arise along the way.
In a report tabled in the National Assembly, Ouko said that KICC management is embroiled in a tussle with its suppliers after failing to keep its promise.
“We recommend payment of various contractors, suppliers and service providers. The corporation risks its assets being attached in the event that the claims are not settled as most claimants have contracts,” Mr Ouko says, as quoted by Daily Nation.
The management had a debt of Sh1.1 billion before the auditor made the changes to Sh387 million. Ouko recommended that the management settles the debt before it’s too late.