Auditor-General Edward Ouko says the Kenya Ports Authority allows invasion of its vast unutilised properties.
Mr Ouko said documents provided for audit review indicate that the authority did not have title deeds for 34 properties in the year to June 2016.
He says 33 out of 34 KPA land and buildings that lacked title documents are in Mombasa. Only one is in Eldoret measuring 17.63 hectares and is valued at Sh65.2 million
The Kenya Ports Authority (KPA) is on the spot for failing to secure title deeds for 34 parcels of land worth Sh3.5 billion.
Auditor-General Edward Ouko says third parties have invaded 29 properties valued at Sh313.4 million belonging to the KPA.
Mr Ouko said documents provided for audit review indicate that the authority did not have title deeds for 34 properties in the year to June 2016.
“Although the management has engaged a consultant to conduct verification of all its properties, no documents were presented for the audit to confirm that the parcels were owned by the authority and were free from encumbrances,” he said in the report tabled in Parliament on Thursday.
Mr Ouko says 33 out of 34 KPA land and buildings that lacked title documents are in Mombasa. Only one is in Eldoret measuring 17.63 hectares and is valued at Sh65.2 million.
The auditor accuses the KPA management of allowing its properties to be alienated by third parties.
“The management indicated that the invaders had purportedly acquired ownership rights over the properties and undertaken developments on the lands,” said Mr Ouko.
He said the authority had filed suits in various law courts, which are pending determination. Mr Ouko had questioned the property, plant and equipment balance of Sh123.2 billion, which includes leased land valued at Sh6.2 billion and land and buildings valued at Sh22.4 billion.
Mr Ouko also questioned 14 pieces of land measuring about 264.47 hectares valued at Sh660.9 million, which are not utilised at all.
The parcels of land not utilised by the KPA as at end of June 2016 includes one in Mombasa on Moi Avenue measuring 0.58 hectares. Others are in Kilifi opposite Malindi Airport, Shimoni in Kwale, Malaba in Busia, Kisumu and Taita Taveta.
The properties either have very old and dilapidated developments, occupied by squatters, open fields, vacant or under cultivation by squatters.
Mr Ouko also put the KPA management on the spot over the excision of part of the harbour area. He said although the KPA tariff book pronounces all the tidal waters encircling the Mombasa Island as harbour area, a firm of private developers had reclaimed part of the tidal waters adjacent to the KPA offices.
He said the KPA did not provide any indication that the National Land Commission had sanctioned the reclamation of land and that the minister responsible for transport had permitted change of harbour area as required by Section 34 of the KPA Act, Cap 391.
“The developer has, therefore, illegally excised part of the harbour area and proceeded to develop the same against instructions issued by the National Land Commission,” said Mr Ouko.
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