Tourism Gazette

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Kenya’s Former Tourism Minister Arrested Over Alleged $54M Misuse of Public Funds

Kenyas former Tourism Cabinet Secretary Najib Balala
Kenya’s former Tourism Cabinet Secretary Najib Balala

Mombasa – Kenya’s former Tourism Cabinet Secretary Najib Balala was arrested on Thursday over allegations of fraudulent use of nearly $54 million in public money during his tenure.

The arrest by Kenya’s Ethics and Anti-Corruption Commission (EACC) comes amid claims that the Tourism Fund improperly allocated funds to establish a Kenya Utalii College campus in Balala’s home region of the Coast. EACC spokesperson Eric Ngumbi stated that Balala was detained in Nairobi and will be flown to Mombasa where he will be charged in a Malindi court.

Investigators allege that $54 million was unlawfully paid out of the Tourism Fund in 2018 to set up the Coast branch of the hospitality college, which was later renamed Ronald Ngala Utalii College. As sitting Tourism CS at the time, Balala allegedly approved the allocation despite proper procurement procedures not being followed. He and three co-accused individuals will face abuse of office charges for circumventing public finance regulations.

Balala served as Tourism CS from 2013-2018 and again from 2019-2022 under the administration of President Uhuru Kenyatta. He was replaced in September 2022 when President William Ruto formed a new Cabinet. The EACC stated that beyond the $54 million for the college project, further investigations are underway into the misappropriation of billions of shillings meant for tourism promotion during Balala’s tenure.

President Ruto has vowed to crack down on rampant corruption across all levels of government left over from previous administrations. If convicted, Balala faces hefty fines or potential imprisonment depending on the level of funds deemed unlawfully spent under his authority as Tourism CS.

The arrest underscores Kenya’s renewed efforts to root out long-standing corruption and misuse of public resources that have plagued critical development initiatives for decades.

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