The future of the Kenya Cultural Centre (KCC), home to generations of artistic expression at the Kenya National Theatre, came under sharp focus as lawmakers questioned whether the institution can survive its mounting financial and governance challenges.
Appearing before the Public Investments Committee on Social Services, Administration and Agriculture (PICSSAA), KCC CEO Michael Pundo faced the MPs over audit queries that paint a troubling picture one of financial strain, unresolved historical issues, and an institution struggling to keep pace with modern governance standards.
By June 30, 2025, KCC had recorded a negative working capital of Sh 14.3 million, with total expenditure of Sh 402.7 million exceeding revenues of Sh 390.6 million as audit reports covering more than a decade reveal a steady accumulation of challenges, culminating in a worrying position in the 2024/2025 financial year.
The Auditor General’s report warned that the Centre is now technically insolvent, raising doubts about its ability to meet its financial obligations as they fall due.
The MPs demanded Pundo to explain how the institution reached this point attributing to the deficit to “prevailing financial constraints” and said they are engaging the National Treasury to secure more stable funding.
But beyond the numbers, MPs turned their attention to what may be the Centre’s most valuable assets, its land and buildings in the heart of Nairobi.
The Committee was informed by the OAG’s report that for over a decade, the Centre has been unable to provide ownership documents for freehold land and buildings valued at Sh 200 million based on a 2014 valuation. The properties include the Kenya National Theatre and adjacent parking areas prime public assets whose legal status remains unclear.
By late 2025 the Centre had yet to produce an updated valuation report to justify a revised figure of Sh 333.9 million, with management citing delays by the Ministry of Public Works.
In a twist that underscores the depth of KCC’s historical baggage, the audit also flagged a long-running dispute with the Kenya Conservatoire of Music. A lease agreement signed in 1961 required the Conservatoire to pay rent for a wing within the Centre. However, the audit revealed that rent for an 18-year period between 1960 and 1978 amounting to Sh 248,400 remains unpaid.
Pundo told the MPs that they are seeking a legal opinion from the Attorney General to finally resolve the matter, which has lingered for more than four decades.
The challenges facing the Centre extend beyond finances and assets as the Auditor General pointed to systemic weaknesses in governance, noting that KCC still operates under the Kenya Cultural Centre Act of 1951 a colonial-era law described as outdated and no longer fit for purpose.
Pundo told the MPs that efforts to replace the law have stalled, with a draft Bill yet to move forward due to lack of funding for public participation.
Meanwhile, the institution’s day-to-day operations are under strain the report revealing that KCC is operating at just 45 percent staff capacity, with only 39 employees against an approved establishment of 86. In some departments, a single officer is responsible for entire processes an arrangement that raises serious concerns about internal controls and service delivery.
Lawmakers, led by Committee Vice Chairperson and the sessional chairperson Caleb Amisi, directed the Centre to develop a clear roadmap to improve efficiency even as it seeks additional government support.
The questions now go beyond audit queries for the the Kenya Cultural Centre as they strike at the heart of its survival, and whether one of Kenya’s most iconic cultural spaces can withstand the weight of its past while adapting to the demands of the present.
