The Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA), chaired by Navakholo MP, Hon. Emmanuel Wangwe, met with the Managing Director of the Kenya Marine and Fisheries Research Institute (KEMFRI), Dr James Mwaluma to scrutinize the institute's financial statements for  the financial years 2019/2020 to 2020/2021.

One of the issues raised during the meeting was the institute's ownership of unsurveyed land in Baringo, Sangoro, and Mtwapa, measuring 2.35 hectares, 0.7 hectares, and 13.4 acres, respectively.

According to the Auditor-General’s report, these properties had neither been valued nor included in the property, plant, and equipment balance of Kshs.1,770,216,144 as of June 30, 2020.

 Additionally, ownership documents for the parcels were not provided, and it was noted that the Mtwapa land had been encroached before its transfer from the Kenya Agricultural Research Institute (KARI) was completed.

The Committee also revisited the sale of the Kongowea land, a 1.998-hectare parcel in Mombasa, sold by the institute in 2007 for Kshs.15, 020,000, despite its valuation at Kshs.22.8 million. In addition, the title deed was transferred to the private developer before KEMFRI received the full sale price, resulting in a loss of Kshs.7, 780,000. The Committee sought clarification on the irregularities surrounding the sale, including the transfer of property before payment and the sale below market value.

The management explained that the Kongowea land, initially acquired in 1991 for staff housing, was later deemed a non-core asset after the Government introduced housing allowances. Consequently, the KEMFRI Board of Management recommended its disposal, with the intent to use the proceeds to construct a Marine and Ocean Services Centre at their headquarters.

Despite obtaining the necessary approvals from the Ministry of Finance and National Planning and the parent Ministry, the sale was met with challenges, including delays in the settlement of municipal land rates and a lack of instructions to invest the sale proceeds in an interest-earning account held by the institute's lawyers.

The matter was further complicated by Government policy changes in 2009, which halted the sale process of public land. The KMFRI Board, after consulting their legal advisors, faced the dilemma of either completing the sale or cancelling it, with both options carrying significant financial implications.

Hon. Wangwe emphasized the importance of transparency and accountability, stating, "Institutions like KEMFRI must ensure that public assets are managed prudently, and any discrepancies are swiftly addressed to avoid unnecessary losses to the taxpayer."