Treasury seeks Sh180 million for new office spaces
With a funding shortfall of Sh30.9 billion, the Ministry of Health is now exploring ways to bridge the deficit. Health Director General Dr. Patrick Amoth noted that the crisis extends beyond HIV programmes.
The Treasury is seeking over Sh180 million in the 2025-26 financial year to lease additional office space despite rising concerns over the high cost of renting government premises.
Budgetary documents show that Sh79 million is earmarked for new offices to ease congestion at the National Treasury Building, while the Financial Reporting Centre (FRC) requires Sh100 million for additional rental space to accommodate more staff.
More To Read
The Institute of Certified Investment and Financial Analysts also faces a Sh3 million rent shortfall.
According to Treasury officials, the increased leasing costs align with priority expenditures under the Bottom-Up Economic Transformation Agenda.
"The National Treasury has acquired an additional office space to relieve congestion at the National Treasury Building. Process of signing a lease agreement is ongoing," wrote PS Chris Kiptoo in a report to Parliament.
The FRC added that "new spaces have been added to the previously leased premises," necessitating an extra Sh100 million in rental costs.
The agency is working to update Kenya’s anti-money laundering and countering financing of terrorism policies before June, hoping to remove the country from the grey list.
However, the growing burden of renting government offices continues to strain taxpayers, despite the Treasury's past pledges to prioritise constructing or purchasing offices over leasing.
Most government offices are housed in prime locations such as Nairobi’s central business district, Westlands, Upper Hill, and Kilimani, areas the Housing ministry deems ideal for government premises.
Treasury documents indicate that a "one-stop shop for all government agencies" is under consideration.
"The Public Administration and International Relations sector has prioritised the construction of offices as opposed to hiring, including foreign missions," reads the draft 2025 Budget Policy Statement.
The government currently spends nearly Sh6 billion annually on office rent. Past data shows that rental costs rose from Sh5.4 billion in 2017 to Sh5.9 billion in 2018.
The Foreign Affairs ministry bears the largest expenditure, leasing offices and residences for Kenya’s envoys abroad.
To cut costs, the government has been leaning toward purchasing property. Kenya is finalising the acquisition of a chancery in London for Sh2.67 billion to replace a lease that costs approximately Sh56 million annually. Similar projects are underway in New Delhi (Sh2 billion), Stockholm (Sh1.6 billion), Geneva (Sh1.3 billion), and Juba (Sh1.5 billion).
Other Topics To Read
Top Stories Today
