Sh5bn Kenya's flagship research hub stalls amid funding crisis
According to the Auditor General, Nancy Gathungu, construction began in February 2013, with the initial completion date set for March 3, 2016. But due to financial constraints, the deadline was pushed to November 2, 2022. Even then, the project was far from finished.
The construction of the Kenya Industrial Research and Development Institute’s (KIRDI) headquarters, designed to drive industrial research and innovation, has stalled since September 2022 due to financial challenges and unpaid contractor dues.
According to the Auditor General’s report for the financial year ending June 2024, the project had already cost taxpayers Sh5 billion by January 2024, with the original budget of Sh3.9 billion increasing to Sh5.4 billion as a result of delays and rising costs.
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The massive building that was once envisioned to be a state-of-the-art facility remains neglected at the junction of Nairobi’s Lusaka and Dunga roads in South B.
The towering structure was to host Kenya’s top technology minds and play a vital role in the realisation of Vision 2030. It was meant to churn out experts in research, development, and innovation in industrial and allied technologies, while also promoting Kenya as a manufacturing hub.
The building’s architectural blueprint included three tower blocks designed to resist earthquakes and wind loads, commercial spaces, showrooms, shops, a plenary hall and a modern amphitheatre. It was also set to house lecture rooms, theatres, restaurants, and accommodation facilities matching a three-star hotel. Additionally, the plan featured three basement floors for parking and a comprehensive drainage system for storm and foul water.
By 2021, there were signs of progress. KIRDI had begun advertising for expressions of interest to lease space within the premises.
“We invite Expression of Interest (EOI) from reputable and experienced hoteliers to lease and operate the accommodation tower of the upcoming KIRDI Technology Centre located at the Junction of Lusaka Road and Dunga Road in South B in Nairobi. The tower is on offer for lease on an as-is basis, and a long-term lease will be negotiated between the successful bidder and KIRDI,” read the advert.
At the time, KIRDI anticipated the facility would be completed by the end of 2021. However, that optimism has since faded. Nearly five years later, the building remains incomplete.
Glass fittings on parts of the structure have fallen off, while blue paint on other sections has started to peel. The once-promising project now stands in stark contrast to the impressive renderings displayed on a nearby signboard.
According to the Auditor General, Nancy Gathungu, construction began in February 2013, with the initial completion date set for March 3, 2016. But due to financial constraints, the deadline was pushed to November 2, 2022. Even then, the project was far from finished.
“However, review of the project records at the time of audit in January 2024 established that the contract was terminated on September 15, 2022, with the project completion rate estimated at 80 per cent, amounting to Sh4,121,243,494 having been cumulatively certified,” reads the Auditor General’s report.
In December 2024, the KIRDI board of directors met and proposed seeking a public-private partnership (PPP) to complete the remaining works. However, that plan was later shelved as the board shifted focus to securing funding from the Exchequer.
In January 2025, Industry Principal Secretary Juma Mukhwana wrote to National Treasury Principal Secretary Chris Kiptoo requesting an additional Sh2.6 billion to finalise the project.
Mukhwana argued that completion would save the government Sh175.9 million annually in rent for agencies like the Anti-Counterfeit Authority, Scrap Metal Council, and Kenya Accreditation Service, which currently lease office space.
“To facilitate timely completion of the project, the State Department and KIRDI propose a phased approach, with the goal of handing over the site by July 1, 2026. In this regard, we kindly request a funding commitment from the National Treasury to KIRDI for the next 18 months to be allocated as follows: Sh800 million in Supplementary II budget in FY 2024/2025 to facilitate the commencement of construction works in Quarter 4 of the FY 2024/2025 and Sh1.8 billion in FY 2025/2026 to complete the project,” read the letter addressed to the National Treasury.
In an interview with Nation, Mukhwana added, “We have got funds from the Exchequer to complete the building. We intend to move the State Department and others that are renting space from private companies to the building as soon as it is complete. We should complete it in the next two years.”
The Treasury has also pledged to allocate Sh1 billion in the 2025/2026 financial year and Sh1.6 billion in 2026/2027 towards the completion of the KIRDI headquarters.
Once finished, the facility is expected to generate about Sh600 million annually in rent from leased spaces, potentially reviving the dream of positioning Kenya as a regional manufacturing powerhouse.
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