Doc. 12.1

DOCUMENT 12

THE PRESBYTERIAN FOUNDATION REPORT TO THE 22ND GENERAL

ASSEMBLY

The Presbyterian Foundation has the pleasure to present its report to the 22nd General

Assembly together with the Audited Accounts for the financial year which ended on 30th

September, 2017.

1. INTRODUCTION

The Presbyterian Foundation is the legal body mandated by the constitution of this Church

and the Laws of Kenya to own properties in trusteeship of the Presbyterian Church of East

Africa and also to act as the business arm of the Church.

2. VISION OF THE PRESBYTERIAN FOUNDATION

To be the leading Christian investment institution supporting the Church mission and

ministry work.

3. MISSION STATEMENT

To facilitate the mission and ministry work in PCEA by effectively and prudently stabilizing, maximizing and expanding the income base of the Church.

4. MOTTO

In business for Christ.

5. MEMBERSHIP AND SHAREHOLDING The existing Presbyteries of Presbyterian Church of East Africa are the shareholders of

Presbyterian Foundation. During the Annual General Meetings, each Presbytery is

represented by the Moderator (an ex official) and one lay person.

The affairs and operations of the Presbyterian Foundation are under the Board of Directors

comprising of thirteen members appointed and nominated in accordance with the

Memorandum and Articles of Association.

The Memorandum and Articles of Association of Presbyterian Foundation provides for

nomination and appointment of Board of Directors who manages its operations on day to

day. In total we have thirteen directors who represent Regions and other interests.

The current board comprises of the following:-

1. Mr. Johnson N. Wathiri - Chairman

2. Rt. Rev. Julius Mwamba - Moderator – 21st G.A. – Ex-official

3. Rev. Peter Kaniah - Secretary General – Ex-official

4. Rev. Alfred M. Kanga - Deputy Secretary General/ Health Board Rep.

5. Mr. Amon N. Ng’ang’a - Honorary Treasurer – Ex-official

6. Rev. Mungai Wakaba - Director (Ministers’ Representative)

7. Mrs. Evelyne M. Kariuki - Director

8. Mr. Henry N. M’Narobi - Director

9. Mrs. Edise Ndirangu - Director

10. Mrs. Veronicah N. Muchiri - Director

11. Mr. Joseph M. Githuku - Director

12. Mr. Samuel W. Njoroge - Secretary – Presbyterian Foundation

Doc 12.2

The Board met two (2) times during the year under review, while the Executive committee

has met six (6) times.

6. PRESBYTERIAN FOUNDATION ACTIVITIES

a) Land registration

The department in liaison with our Presbyteries, Parishes, congregations and institutions

continues to register and document properties owned by the Church. We have managed to

acquire 25 title deeds during the year under review.

As earlier urged during the GAC 2017, we wish to remind our Presbyteries, Parishes and

Institutions to ensure that all documents are executed by the Presbyterian Foundation.

During the year under review, we have also noted that there are interferences/reluctance by

both the National and County Governments in the registration/issuance of title deeds for the

properties owned by this Church.

b) Property Records – 2017

We have continued to update our records on yearly basis as per the information received,

and this record is available in the department. We shall continue to update our records

annually and share the same information with Property & Development Committee at the

Presbytery level, and therefore urge the Presbyteries to strengthen their committees for

effective communication.

c) Land rates and land rents

We urge the Presbyteries, Parishes and Institutions to liaise with the respective government

department and ensure that these statutory payments are paid on time as provided in law.

d) Rental Income Tax and VAT

We urge ALL Presbyteries, Parishes and Institutions with rental houses earning revenue to

liaise with Presbyterian Foundation for proper payments of the above tax which is 10% of

gross income and payable on 20th of every month. Failure to make payments attracts hefty

penalties and interests.

e) Income generating projects

The department has continued to support the development of income generating project

through guaranteeing of loans to various financial institutions.

We urge the Presbyteries, Parishes and our institutions to join the Saccos in order to acquire

loan facilities at cheaper and reasonable rates.

We also thank those Presbyteries who has formed and strengthened their Presbytery

Property & Development Committee and urges those Presbyteries who are yet to form the

committee to do so.

We also recommend that, Presbyterian Foundation to be enjoined as members of the

projects financed by beyond Kshs. 10 million.

f) Court cases

These continue to be the biggest challenges facing the department and the Church and the

department is exploring on the best way to sort out the matters out of court.

Doc.12. 3

7. Milele Hotel Nairobi

The income for the financial year amounted to Kshs. 82,265,692/- with a surplus of

Kshs.2,793,503/- and we thank God for the far He has taken us. The facility is in its 11th year

of operations and we are renovating and upgrading the facility as per the availability of

funds.

8. Milele Beach Hotel – Mombasa

The Board has continued to operate the hotel since July, 2016 and the income during the

year is Kshs 54,903,937/- with a surplus of Kshs.9,496,467/-.

During the year under review, we note that over 35% of our clients are from our Presbyteries,

Parishes and congregations. We wish to take this opportunity to thank P.C.E.A. fraternity for

the continued support during the period we have operated the hotel.

9. Challenges

Milele Beach hotel repayment of the principal loan and interest from National Bank of Kenya leading to threat from the financier to dispose the hotel.

Monitoring and evaluation system of the income generating projects guaranteed by Presbyterian Foundation is low.

Ensuring the role and activities of Presbyterian Foundation are felt at the lowest level of the Church.

Registration of companies and trusts by our Presbyteries/Parishes and congregations against the constitution of Church and Laws of Kenya.

Interference of National and County Government in properties which are yet to be registered.

Registration and acquisition of title deeds of properties owned by the Presbyterian Church of East Africa.

10. Future plans

In liaison with our Presbyteries, Parishes ensure all unregistered properties are registered.

Construction of a swimming pool and associated facilities at Milele hotel – Nairobi and a children’s park.

Ensure proper feasibility studies, evaluations and monitoring of guaranteed income generating projects is done at all times.

Development of six town houses at Lavington House – Convent Drive. Report by:

Johnson Njatha Wathiri Samuel Gatheru Kanyoro

CHAIRMAN Ag. SECRETARY

RESOLUTIONS – DOCUMENT 12

1. The GA receives the report of the Presbyterian Foundation together with the

audited accounts for the financial year which ended on 30th September, 2017 and

thanks the Board for the work done.

2. The GA notes with appreciation the title deeds registered and acquired during the

year. Further, the GA instructs the Presbyteries, Parishes, Congregations and

Institutions to reconstitute and strengthen the Property Development

Committees to handle issues of the property registration.

3. The GA thanks the Board for their continued support and guidance given to

Presbyteries and Parishes in form of guaranteeing and urges all our Presbyteries

and Parishes to use this opportunity to develop income generating projects.

4. The GA notes with appreciation the future plans of the Board especially

construction of the children’s park and a swimming pool with associate facilities

due for implementation this financial year and wish them God’s blessings.

5. The GA notes with appreciation the good performance of Milele Beach Hotel –

Mombasa and Milele Hotel Nairobi. Further, the GA thanks our Presbyteries,

Parishes, Congregations and Institutions for their continued support during the

year and urges them to continue supporting the facilities.

6. The GA thanks the Presbyterian Foundation and the Finance Committee for the

efforts they are making to develop six town houses at Convent Drive house at

Lavington Estate.

7. The GA notes with concern, the continued increase of court cases and urges our

Presbyteries, Parishes and Institutions to seek for alternative means of dispute

resolutions.