The Great Disappearance: Where Did PCEA’s Sh430 Million Milele Hotel Rescue Funds Go?

On March 5, 2019, PCEA Secretary-General Rev Peter Kaniah dispatched letters to all 56 presbyteries across Kenya, calling on the church’s estimated four million members to rescue Milele Beach Hotel from auction .

The Target: The church needed to raise Sh761 million to clear the outstanding debt and prevent the auction of the property .

The Plan: The church divided the debt across its presbyteries, with each parish expected to raise Sh13 million monthly for two years . The total target was approximately Sh761 million, with funds ostensibly to complete the stalled 64-unit apartment block, which would then be sold for an expected Sh1.2 billion. The proceeds would then clear the NBK loan.

The Incentive Structure: Parishes that raised Sh20 million quickly would receive one apartment, expected to generate Sh300,000-350,000 monthly at 70% occupancy . All funds invested would be converted to shares earning annual dividends from hotel returns.

The Directive: Rev Kaniah’s letter explicitly stated: “Kindly note that this is for implementation but not for deliberation as per our Practice and Procedure manual” . This effectively ordered compliance without debate, suppressing any questioning of the initiative.

The Critical Detail: The letter directed that “all ministers and staff tithes will be channelled to the KCB account of Kairete Ltd,” a newly formed subsidiary of the Presbyterian Foundation . This created a separate financial vehicle that would not be subject to the usual church financial oversight.

The Funds: What Was Actually Raised

Reports indicated that the church raised approximately Sh430 million from congregants nationwide . The harambee effort was one of the largest fundraising campaigns ever conducted by a Kenyan church for a single project.

The Promise: The church assured congregants that:

• All investments would be converted to shares
• Investors would earn dividends from hotel profits
• The hotel would be saved from auction
• The apartments would be completed and sold

The Reality: Despite this massive fundraising effort, the church’s debt did not decrease. By 2024, the outstanding balance had grown to Sh1.07 billion .

The Mystery Deepens

The numbers tell a troubling story:

Critical Observation: Despite the 2019 fundraising campaign that reportedly raised Sh430 million, the debt was higher in 2024 than in 2007. This suggests either:

1. The funds were not applied to the loan as promised
2. Interest and penalties accumulated faster than payments reduced the principal
3. The funds were diverted elsewhere

The Official Explanation

PCEA Secretary General Robert Waihenya provided an explanation in 2026 for what happened to the funds .

According to Waihenya:

1. The Sh125 Million: The church managed to raise Sh125 million of the Sh130 million required to complete the apartment project . However, “we didn’t build, we started huggling over what we should do” .
2. Leadership Transition: The period of indecision coincided with a change in church leadership. By the time the new team assumed office, the loan had grown substantially .
3. Court Awards: Buyers who had paid deposits for off-plan units went to court and won hefty damages. “Someone who had paid Sh3 million was awarded Sh7 million. The one who had paid the most was Sh8 million but because of loss of income the court awarded them a very hefty award” . Part of the Sh125 million was used to settle these awards.
4. Interest and Penalties: By the time the 24th General Assembly leadership settled into office, the loan had grown to more than Sh1 billion .
5. No New Loans: Waihenya insisted that no new loan had been taken during the current leadership’s six years in office. The money raised was part of the Sh125 million already collected .

The Unanswered Questions

Despite Waihenya’s explanations, significant questions remain:

1. Where did the Sh430 million go? Only Sh125 million of the raised funds is accounted for in the explanation.
2. Why was the debt higher after the campaign? If Sh430 million was raised, the debt should have decreased significantly. Instead, it grew from Sh761 million to over Sh1 billion.
3. What happened to the promised shares and dividends? Congregants who invested in the hotel were promised shares and annual dividends. None have been delivered.
4. Why wasn’t an audit conducted? No public audit has been provided for the 2019 fundraising proceeds or the hotel’s finances.
5. Who authorized the diversion of funds? The decision to use member contributions for court awards and not for debt repayment raises serious governance questions.

The Human Cost

PCEA members who gave sacrificially in 2019—believing they were saving a church asset—have been asked to give again in 2026 . The promised dividends and investment returns never materialized.

The Emotional Toll:

• Congregants who gave sacrificially feel betrayed
• The invocation of God’s name for a commercial rescue strains faith
• Many are questioning whether their tithes and offerings are being used appropriately

A senior PCEA member anonymously expressed concern that “this church, with its institutions, is terribly failing” and had departed from its core mission of winning souls for Christ .

The Spiritual Warfare Narrative

PCEA Secretary General Robert Waihenya has framed the crisis as “a spiritual problem” and “spiritual warfare,” claiming efforts by unnamed individuals to force a sale had intensified .

Critics’ Response: This framing has been met with skepticism, with many questioning why a church’s commercial venture should be elevated to spiritual status, particularly when the problems are clearly financial and operational in nature.

“This is a spiritual problem and that is why I have stood and said we are not selling,” Waihenya told congregants at a Kayole church service .

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