Bomas: Shadowy project minting taxpayers' billions

The Bomas of Kenya has stood for decades as a symbol of the country’s cultural diversity, a place where traditional dancers perform and visitors learn about Kenya’s ethnic communities.

Soon, however, it could be transformed into a modern commercial complex of concrete, glass structures, and shopping arcades.

With a price tag that has ballooned from Sh31.7 billion to a staggering Sh45.1 billion, the Bomas International Convention Complex (BICC) is being presented to the public as a transformative legacy project. However, behind the construction activity and sleek artist impressions lies a web of secrecy, alleged irregularities, and massive financial exposure that has left the very institution financing the project largely in the dark.

The Standard has uncovered details from highly placed sources within the Tourism Fund Board revealing that trustees have been systematically excluded from decision-making regarding a financial commitment that will divert Sh4.5 billion annually from tourism levy collections to an unknown private entity.

The Tourism Fund collects approximately Sh6.2 billion annually and will now cede 80 per cent of its revenue, money originally intended for training tourism sector workers and marketing Kenya internationally, to finance the Bomas construction project.

None of the board members, apart from the chairman, has seen the contract. None has ratified the payment arrangement directing Sh4.5 billion annually to Sidian Bank. When board members attempted to visit the construction site to see how their funds were being utilised, they were reportedly turned away at the gate.

The Tourism Fund collects revenue through a two per cent levy charged on hotel bed nights, restaurant meals consumed by tourists, and safari bookings. The funds are meant to support staff training, international tourism marketing, and institutions that sustain the sector’s growth.

Under Kenyan law, every shilling collected must be properly accounted for. Major financial decisions must be debated and approved by the full Board of Trustees, a requirement that is considered non-negotiable under public finance regulations.

However, when the Bomas convention centre financing arrangement was being developed, the board was reportedly excluded from discussions.

“We were never shown anything, not a single document or presentation. The first time we learned about the scale of our financial involvement was when we read about it in the newspapers like everyone else,” said one board member.

The arrangement effectively turns the Tourism Fund into a financial guarantor for a large private construction project fronted by a Turkish company. A standing order has reportedly been issued to Sidian Bank directing Sh4.5 billion to be automatically transferred each year to a Special Purpose Vehicle (SPV) established specifically for the Bomas project.

This is not a one-off grant, but a long-term financial obligation. At Sh4.5 billion annually, the arrangement would amount to Sh45 billion over 10 years and approximately Sh90 billion over 20 years. However, the board has not been informed about the repayment period, interest rate, or ultimate beneficiaries of the funds.

“We are being asked to guarantee something we have never seen,” the board member said. “There is no feasibility study, no business case, and no procurement documentation. There is nothing, just a directive that our money will now be redirected elsewhere.”

The Public Finance Management (PFM) Act clearly outlines how public funds must be managed. Any financial commitment of this magnitude requires National Treasury approval, parliamentary scrutiny through the relevant budget committee, and a transparent audit trail. Sources suggest that these requirements may not have been fully observed.

“We are in breach of the PFM Act and the Public Procurement Act,” the board member said. “This was entered into contrary to the laws governing public funds. Yet we, who are legally responsible for safeguarding this fund, were never consulted.”

Tourism Fund chairman Samson Kipkoech Some is widely believed to hold significant influence over the process. Appointed by President William Ruto in February 2023, Some entered office with strong political backing. Sources claim his proximity to powerful political circles, including family connections, has given him unusual autonomy within the institution.

“He operates as if he owns the institution,” another board member said. “When we ask questions, we are told everything is under control. When we request documents, we are told they are confidential. When we try to visit the project site, we are denied entry. Only the chairman is allowed access.”

Board members recounted a meeting where they formally requested permission to visit the construction site. They intended to verify how Sh45 billion of industry funds was being spent.

“We were simply told we were not allowed. Just like that. Not allowed. We are the trustees of this fund and legally liable if anything goes wrong, yet we cannot see what our money is building,” the board member said.

Attempts by The Standard to reach Some for comment were unsuccessful. His phone went unanswered and messages were not returned.

The Bomas International Convention Complex was initially valued at Sh31.7 billion, a figure approved by Cabinet in August 2023 during a retreat at Sagana State Lodge.

The project was awarded to Turkish firm Summa Turizm Yatirimciligi Anonim Sirketi through a direct tender process under the Ministry of Defence.

The involvement of the Defence Ministry raised immediate concerns about transparency. Civilian projects managed under military procurement structures often face limited public scrutiny, with procurement rules and parliamentary oversight sometimes restricted under national security provisions.

However, complications soon followed. The Ministry of Defence terminated the contract 329 days later, citing a lack of funds. The contractor challenged the decision before the Public Procurement Administrative Review Board, which ruled in December 2024 that the termination was illegal and ordered the government to proceed with the project.

The government appealed, but the High Court and subsequently the Court of Appeal dismissed the appeal, ruling that procurement timelines must be strictly followed. The Turkish company thus retained the contract.

While legal battles continued, project costs escalated. The price rose from Sh31.7 billion to Sh45.1 billion as project scope expanded to include five-star hotels and a large shopping mall to be operated by private investors under long-term lease arrangements.

However, how the Tourism Fund became involved in financing this expanded vision remains unclear to board members.

“Was there a stakeholder engagement forum before this process began?” asked one board member. “No. Was the budget presented to the relevant parliamentary committee? We have no evidence. Who conducted the feasibility study to determine project viability? We do not know. These are basic questions, yet we have no answers.”

The mechanism for extracting funds is particularly controversial. The Tourism Fund has reportedly issued a standing order to Sidian Bank, where all tourism levy collections are deposited. From that account, Sh4.5 billion is automatically transferred annually to the SPV managing the Bomas project.

An SPV is a legal entity created for specific financial arrangements. It is not a public institution and is generally not subject to direct parliamentary oversight. Funds transferred into an SPV may effectively move outside direct public scrutiny.

Who controls the SPV remains unclear. Questions remain whether it is owned by the Turkish contractor, local investors, or whether government representatives sit on its board. 

“We are supposed to protect this money,” said another board member. “That is our job. We are custodians. But we cannot protect what we cannot see. The agreement is locked somewhere, possibly at State House or Treasury, and only a few people have access.”

The arrangement has raised serious audit concerns. The Office of the Auditor General is constitutionally mandated to examine public expenditure. However, if funds are channelled into private SPVs, questions arise over whether full financial transparency can be maintained.

Outside the boardroom, the tourism industry is expressing growing anger. Hoteliers, tour operators, and conservation groups are watching industry funds being diverted into a project they did not approve and cannot control.

Industry stakeholders are demanding answers about total project cost projections. The price has already increased from Sh31.7 billion to Sh45.1 billion, and critics fear further increases.

They are also questioning how long the Tourism Fund will finance the project. If Sh4.5 billion is withdrawn annually, for how many years will payments continue? What will be the total interest cost by the time financing is completed? At commercial lending rates, the final cost could be extremely high.

“Being public money, and especially a sector-specific levy, industry players must be involved and full disclosure must be made,” said one tourism lobby official. “The industry was never consulted. No one asked hoteliers whether they wanted their levy funds spent on a convention centre.”

The official also pointed out that critical sector institutions remain underfunded. Utalii College, which trains hospitality professionals, has remained incomplete for over 15 years. The Tourism Research Institute, responsible for sector planning data, remains chronically underfunded. Community conservancies protecting wildlife and providing employment are also struggling financially.

Sources within Parliament claim oversight mechanisms have weakened because some oversight committees have been compromised.

Dan Wanyama, chairman of the National Assembly’s Sports and Heritage Committee, has the authority to demand project contracts related to the Bomas project. However, The Standard attempted to contact him but received no response.

The security guard who reportedly denied Tourism Fund board members entry to the Bomas construction site was allegedly acting under instructions from higher authorities.

Above him, sources suggest, there is only one man who holds complete control of the arrangement. His name is Samson Kipkoech Some.

And he is said to hold the only copy of a contract that could potentially shake an entire industry.