President Ruto, DP Kindiki offices seek Sh1.6 billion for renovations

The offices of President William Ruto and Deputy President Kithure Kindiki are seeking nearly Sh1.6 billion in the upcoming financial year for renovations and upgrades to several government buildings.

These proposals, which include refurbishing State Houses, official residences, and key offices, were initially put on hold earlier due to budget shortfalls following the collapse of the Finance Bill, 2024.

Budget documents submitted to the Treasury reveal that nearly Sh1.62 billion is being requested for various projects, including refurbishing State Houses in Nairobi, Mombasa, Kisumu, Nakuru, and Kakamega, as well as upgrading the President's Harambee House office and the Deputy President's Harambee Annex office.

The funds will also go towards purchasing new communication and networking equipment and for mechanical garage upgrades.

These renovation plans were previously delayed due to a shortfall in government revenue, which was worsened by anti-government protests in mid-2024.

The protests led to the withdrawal of certain tax measures, further exacerbating the budget deficit. In response, austerity measures were put in place, suspending non-essential spending, including these planned refurbishments.

However, with the reinstatement of some tax measures under the Tax (Amendment) Act 2024, the government is now seeking funding to continue these projects.

The total projected cost of upgrading the President's and Deputy President's official residences and offices is nearly Sh7.6 billion, with the current request being a portion of that amount.

KRA pressure

The Kenya Revenue Authority (KRA) has been under pressure to boost tax collections after the collapse of the Finance Bill.

KRA has intensified efforts to crack down on tax evasion, using data from various sources, including bank statements, vehicle registration records, and utility bills, to identify individuals and businesses not complying with tax laws.

The proposed tax measures are expected to raise Kenya's tax revenue to Sh2.732 trillion in the next fiscal year, up from a projected Sh2.389 trillion this year.

These funds will help support key government projects, including the renovations of State Houses and official offices.

Specific allocations include Sh180 million for the ongoing State House Nairobi refurbishment project, which began in 2015 and is projected to cost Sh1.77 billion by 2027.

The State House in Mombasa will receive an additional Sh55 million, while smaller amounts are allocated for the State Houses in Kisumu, Nakuru, and Kakamega.

The Deputy President's office will also see funding for upgrades, with Sh50 million for his official residence and Sh35 million for the Harambee Annex office.

In addition, there is a planned Sh200 million increase in funding for a communication and networking project at State House, as well as additional money for specialized equipment and a mechanical garage.

These renovation requests come at a time when the government is balancing the need for infrastructure improvements with the need to increase tax revenues, raising questions about the priorities in Kenya's upcoming budget.