Special Programmes Minister, Esther Murugi is in trouble over hotels she authorized to be constructed in Nyeri and Eldoret for Kenya Red Cross Society.
Murugi, who is also the Nyeri town MP, found herself in murky waters in parliament on Monday, after she was unable to reveal the source of funds for the construction to the House Select Committee. But in a tough rejoinder, Murugi said KRC’s business involvement does not change its position as a non–profit facility and further stated that profits realised from the identified investments will only be used for humanitarian purposes.
“KRC is not alone in starting income generating activities. Various charities, churches and philanthropic organizations are doing the same in Kenya,” Murugi said.
Murugi further stated that her ministry cannot force KRC to give financial details about the society as it is only accountable to its national executive committee, trustees and governing board. She in fact ran into trouble when she said that the government is part and parcel of the hotel’s undertakings.
The other hotels, in question are in Nairobi’s south C area, which she still could not disclose their income. Murugi was asked to submit the details of the bank which financed the hotel’s construction in two weeks time.
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