PCEA split over Sh1bn Milele Beach Hotel debt

By Newsflash Writer

The Presbyterian Church of East Africa (PCEA) is divided over the payment of more than Sh1 billion owed by the Mombasa-based Milele Beach Hotel, with differences emerging between Moderator Thegu Mutahi and Secretary General Dr Robert Waihenya.

The disagreement has been exposed through separate statements issued by the two senior church officials on Friday, August 28, 2026, over a planned visit to State House to seek assistance in resolving the hotel’s financial obligations.

The church is embroiled in the mode of payment of more than Sh1 billion loan which has accumulated over the years.

In his statement to all presbytery clerks, Moderator Thegu Mutahi sought to distance the church from any planned delegation to State House, insisting that PCEA must remain independent and non-partisan.

“PCEA is a respectable, independent and non-partisan Church,” Rev Mutahi said, warning that the church’s financial challenges should not compromise its conscience, doctrines or ability to speak truth to power.

He said the church was not organising, sponsoring or endorsing any delegation to visit any politician to seek financial favours or political patronage.

“For the avoidance of doubt, PCEA is not organising, sponsoring or endorsing any delegation to visit any politician to seek financial favours or political patronage, whether at State House, Wamunyoro, Tseikuru or Sisi ndio Sifuna,” he said.

The statement followed reports and a trending video clip concerning an alleged planned visit by some clergy to State House.

Church seeks funds to settle debt

However, Dr Waihenya issued a separate statement to all presbytery clerks confirming that PCEA plans an administrative visit to President William Ruto on October 2, 2026, over the Milele Beach Hotel debt.

Waihenya said the visit was based on a resolution of the church’s Business Committee made during its meeting on July 28.

According to the Secretary General, the Presbyterian Foundation had reported that interventions had reduced the hotel’s outstanding loan from Sh1.1 billion to Sh753 million. The church had already paid Sh50 million, leaving a balance of Sh703 million.

The Business Committee, under Minute 5359, resolved to pursue the redemption of the hotel within a three-month extension granted by the bank.

It also approved three parallel ways of raising the outstanding amount: seeking government support that had reportedly been promised by the President during the General Assembly, pursuing compensation for the Westlands property and mobilising funds from church members through a paybill and other means.

Waihenya said President Ruto had given PCEA October 2 as a date for the engagement.

“This is an administrative visit and not a political visit,” he said, adding that the meeting would be with the Head of State and not a political party leader.

He said the visit was intended to resolve the Milele problem “once and for all” and end what he termed the “shame and politics” surrounding the matter.

Insiders told Newsflash that the contrasting statements have exposed tensions at the top of the church over how PCEA should handle its financial difficulties while safeguarding its political independence.