The Central Bank of Kenya (CBK) risks a loss of Sh466.5 million in its investment properties after an audit valued the assets lower than what the monetary authority paid for them.
Revelations made by the Auditor-General’s office show buildings and two parcels of land purchased by the bank last year were valued lower than their construction cost and purchase price by an independent consultant.
Buildings constructed at a cost of Sh2.25 billion in January 2025 were valued at Sh1.84 billion by external valuers barely 18 months after completion. This means the project’s value depreciated by Sh410.9 million between January 23, 2025 and the end of June 2026.
Two parcels of land acquired by the bank in January 2025 at a cost of Sh145 million were valued at Sh104.3 million indicating a valuation loss of Sh40.6 million.
Two perimeter walls constructed at a cost of Sh45.3 million and handed over in July, 2025 and May, 2026 were valued at Sh30.2 million. This means the value of the walls declined by Sh15 million with one of the perimeter walls losing millions in value less than a month after completion.
“The decline in value for the recently acquired assets raises doubt regarding the reasonableness of the original acquisition cost of these assets,” said the Auditor-General.
“In the circumstances, the Bank may not have obtained value for money in the acquisition of these assets.”
In Kenya, land and property has in the past 20 years proved to be one of the most valuable asset classes with value continuing to appreciate across all cities and major towns, making the valuer’s decision to reduce the value of CBK’s properties unique.
The apex bank did not address the reasons for the decline in the assets’ value when contacted by Business Daily , only stating that it followed due process when investing in the properties.
“All assets acquired by the Bank through purchase or construction strictly followed the requirements of the Public Procurement and Assets Disposal Act (PPADA), 2015, including engaging the Ministry of Lands, Public Works, Housing and Urban Development, prior to acquisition of land,” said CBK governor, Dr. Kamau Thugge in response to Business Daily queries.
“The procurement of these assets and related expenditure was audited, reviewed, and found to be in compliance with the relevant laws and Bank policies,” he added.
Dr Thugge did not disclose the buildings whose value was reviewed downwards nor the location of the two parcels cited by the auditor general and where the perimeter walls were constructed.
The apex bank however highlighted the acquisition of land in Meru for the construction of a planned CBK Centre premises and the fencing of proposed CBK Nakuru Branch as some of its recent achievements.
Some of the buildings belonging to the CBK that came to the market in early 2025 include the Police Housing Complex in Nairobi’s Industrial Area. The project had 210 fully furnished residential units comprising 200 two-bedroom apartments and 10 three-bedroom apartments.
The bank paid Sh666 million in the arbitration process to the counterparty whose identity was not revealed.
CBK’s land and buildings were revalued as at 30 June 2026 by Milligan Valuers Ltd, Recad Valuers and Sec and M valuers Co.Ltd.
The valuation resulted in an overall revaluation gain of Sh1.68 billion arising from adjustment of previously overstated depreciation of Sh4.6 billion. The adjustment in depreciation helped wipe out a Sh2.9 billion valuation loss.
The bank’s land and buildings were valued at Sh18.2 billion down from Sh21.8 billion a year earlier with Sh105 million spent in acquiring additional property while it disposed of Sh16 million worth of real estate assets.
