An audit by the Auditor-General’s office has shown that the Central Bank of Kenya (CBK) may incur a loss of KSh466.5 million on its investment properties after independent valuers priced the assets below the amounts paid for them.

Buildings that cost KSh2.25 billion to construct in January 2025 were re-valued at KSh1.84 billion, indicating a depreciation of KSh410.9 million over the 18-month period to the end of June 2026. Two parcels of land bought for KSh145 million in the same month were valued at KSh104.3 million, a loss of KSh40.6 million. Perimeter walls erected for a total cost of KSh45.3 million and handed over in July 2025 and May 2026 were assessed at KSh30.2 million, reflecting a decline of KSh15 million, with one wall losing value within a month of completion.

The Auditor-General said the drop in value “raises doubt regarding the reasonableness of the original acquisition cost” and suggested the bank may not have achieved value for money.

CBK governor Dr Kamau Thugge responded that all acquisitions complied with the Public Procurement and Assets Disposal Act 2015 and that the Ministry of Lands, Public Works, Housing and Urban Development was consulted before any purchase. He added that the procurement process had been audited and found to meet relevant laws and bank policies.

The governor did not identify the specific buildings or locations involved. CBK did note recent achievements such as acquiring land in Meru for a planned CBK Centre and fencing a proposed CBK branch in Nakuru. Among the bank’s properties sold in early 2025 was the Police Housing Complex in Nairobi’s Industrial Area, comprising 210 fully furnished units, and a legal dispute over that project was settled through arbitration with a payment of KSh666 million to an undisclosed counterparty.

A revaluation of the bank’s land and buildings as at June 30, 2026, carried out by Milligan Valuers Ltd, Recad Valuers and Sec and M Valuers Co. Ltd, produced an overall gain of KSh1.68 billion after correcting an overstated depreciation of KSh4.6 billion. The adjustment eliminated a prior loss of KSh2.9 billion, leaving the portfolio valued at KSh18.2 billion, down from KSh21.8 billion a year earlier, after spending KSh105 million on new property and disposing of assets worth KSh16 million.