National Treasury and Tourism Ministry Clash Over Sh4.5 Billion Bomas of Kenya Funding

A contentious dispute has emerged within President William Ruto’s Cabinet, casting a shadow over the proposed allocation of Sh4.5 billion for the renovation of the Bomas of Kenya. 

The disagreement pits National Treasury Cabinet Secretary John Mbadi against Tourism and Wildlife Cabinet Secretary Rebbecca Miano, prompting parliamentary intervention and raising concerns about transparency in public fund management.

The core of the controversy lies in a directive from the National Treasury to earmark Sh4.5 billion from the Tourism Promotion Fund (TPF) specifically for the renovation of Bomas of Kenya. However, Ms. Miano has challenged this directive, asserting that Bomas of Kenya does not fall under her ministry’s purview. 

She cites Executive Order No. 2 of 2023, which places the facility under the Ministry of Gender, Culture, the Arts, and Heritage. The Budget and Appropriations Committee (BAC) has responded by withholding approval of the disputed funding until the matter is fully clarified. Kareke Mbiuki, Chairperson of the Tourism and Wildlife Committee, informed BAC that both Cabinet secretaries have been summoned to Parliament to provide detailed explanations. 

He emphasises that no funds have been approved for the renovations pending this clarification. During a recent session before the Tourism and Wildlife Committee, Ms. Miano disclosed that she had formally written to the National Treasury seeking clarification on the directive. She insisted that her ministry had not authorised the expenditure and is awaiting further discussions with Mr. Mbadi to understand the rationale behind the allocation.

Compounding the issue is a previously stated government plan to finance Bomas of Kenya’s renovation through a public-private partnership with Turkish firm Summa Turizm Yatirimciligi Sirketi, valued at Sh31.6 billion. Members of the Tourism and Wildlife Committee have expressed surprise at the National Treasury’s directive, emphasising that funds should not be arbitrarily transferred between ministries without formal agreements. Tongaren MP John Chikati underscores the need for proper documentation, stating that in the absence of such frameworks, the committee would refrain from involvement in the matter.

The National Treasury’s move to allocate TPF funds toward Bomas of Kenya occurs at a time when other vital tourism-related state agencies are experiencing significant financial difficulties. The Ronald Ngala Utalii College, for example, remains incomplete more than 15 years after construction began. The institution, intended to alleviate the burden on Nairobi’s Utalii College and serve as a hospitality training hub for the coastal region, was originally slated for completion in 2019 but has faced numerous setbacks due to funding shortages.

Similarly, the Tourism Research Institute, tasked with collecting and analysing tourism data nationwide, continues to grapple with underfunding. Despite tourism being one of Kenya’s most significant revenue generators, ranking third after diaspora remittances and agriculture, the sector faces substantial budgetary constraints. In 2024, tourism revenue reached Sh452.2 billion, with projections estimating a rise to Sh560 billion in 2025.

These financial challenges have raised broader questions about the government’s priorities. With vital institutions struggling due to inadequate resources, the decision to divert TPF funds toward a renovation project has drawn criticism from lawmakers who argue that the allocation lacks strategic justification. Mr. Mbiuki questions whether the Bomas of Kenya renovations were an urgent priority, suggesting that the funds should be directed to more pressing tourism-related projects that align with the sector’s development goals.

Historically, the TPF has operated with significant autonomy, using its proceeds on self-selected projects under the Treasury’s leadership.