Kenya, Aug. 29 -- Nairobi Governor Johnson Sakaja is under intense scrutiny following a Sh2.5 billion Hollywood investment loss, with US debt authorities seizing assets managed by a company handling his offshore investments. The funds, allegedly intended for property purchases in the United States, were lost after the firm's collapse, fueling public outrage.
This setback comes amid claims that Sakaja owns multiple properties in Dubai, raising questions about his financial dealings and transparency as a public official.
The Sh2.5 billion Hollywood investment loss has thrust Sakaja into a political storm, with critics demanding accountability for the mismanagement of such a substantial sum.
The investment, channeled through a US-based company, was reportedly aimed at acquiring high-value properties in Hollywood, California. However, US debt authorities intervened, seizing the firm's assets due to unpaid obligations, leaving Sakaja's investment in limbo.
The governor, who has faced prior allegations of owning undisclosed properties in Dubai, now faces accusations of reckless financial decisions, with some questioning the source of the funds.
Sakaja's offshore investments have sparked debate about the ethics of public officials engaging in high-risk ventures abroad. The Hollywood investment, intended to diversify his portfolio, was seen as a bold move, but its collapse has drawn comparisons to other financial missteps in his administration.
The Dubai properties allegation has amplified public doubts, with social media platforms buzzing about the governor's wealth and its origins. Critics argue that the Sh2.5 billion could have addressed pressing issues in Nairobi, such as the county's Sh118.3 billion in pending bills or the Sh8.6 billion annual water loss due to infrastructure failures.
The seizure by US debt authorities highlights the risks of offshore investments, particularly when managed by third-party firms with financial vulnerabilities. While Sakaja has not publicly addressed the Hollywood investment loss, the incident has fueled calls for an audit of his assets, both domestic and international.
The Dubai properties claim, has added to the narrative of opacity, with some residents questioning whether the governor's focus on foreign ventures distracts from Nairobi's urgent needs, like healthcare and infrastructure development.
The controversy has also drawn attention to Sakaja's broader financial management record. Despite claims of boosting Nairobi's revenue to Sh12.8 billion in 2023/24, his administration has struggled with revenue shortfalls and unaccounted funds, including a Sh2.2 billion variance flagged by auditors.
As pressure mounts, Sakaja's silence on the Sh2.5 billion Hollywood investment loss has left room for speculation. The Dubai properties allegation, whether substantiated or not, continues to cast a shadow, with calls for investigations into his financial dealings growing louder.
Published by HT Digital Content Services with permission from Bana Kenya.