NAIROBI, Kenya – Kenya’s taxpayers are losing millions in public funds, with government departments continuing to pay for office spaces that remain unused, according to a revealing new audit report.
The findings, which paint a troubling picture of government mismanagement, have raised alarm over the waste of taxpayer money amid ongoing financial struggles.
The audit, conducted by Auditor General Nancy Gathungu, exposes that five key government agencies collectively owe a staggering Sh125 million in rent for offices they have not occupied.
The departments in question include the Ministry of Sports, the State Law Office, the Office of the Director of Public Prosecutions (DPP), the Commission on Revenue Allocation (CRA), and the Ministry of Micro, Small, and Medium Enterprises (MSMEs).
Perhaps the most egregious case involves the Ministry of Sports, which spent a massive Sh98 million to renovate three floors of the Maktaba Kuu Building in Nairobi with plans to house its offices.
Despite the hefty investment, the ministry has never moved into the newly renovated space.
Instead, both the Cabinet Secretary and Principal Secretary continue to work from Talanta Plaza, with no intention of occupying the Maktaba Kuu premises.
Auditors who visited the building in September 2024 confirmed the space remains vacant.
Gathungu expressed concern, stating that no satisfactory explanation had been provided for the failure to use the office.
She raised serious questions about the value for money spent on renovations that were never utilized.
“The regularity and value for money of the expenditure of Sh98 million couldn’t be confirmed,” Gathungu said in her report, highlighting the absence of a valid rationale behind the sports department’s decision to spend such a large sum on an office it did not use.
The misuse of taxpayer money was evident across other government bodies as well.
The State Law Office, for instance, spent Sh20 million on an office at the Central Bank Pension Towers that it has never occupied.
This expenditure was flagged as a violation of the Public Finance Management Act, which mandates the prudent use of public funds.
“This payment of rent for unoccupied office space is contrary to the principles of prudent financial management,” Gathungu commented, emphasizing the breach of public finance regulations.
The MSMEs department also drew criticism for paying Sh22 million for an office it has not used.
Despite having a rent-free period for fitting the space, the department failed to occupy the office 15 months after the lease was signed.
This decision has raised questions about the department’s priorities, especially given the availability of office space at the underutilized Kenya Institute of Business Training (KIBT) building, where 60 percent of the space remains vacant.
Further scrutiny was directed at the Commission on Revenue Allocation, which made a Sh21 million upfront payment for office space at Prism Towers.
However, procurement delays pushed the project timeline back five months, prompting auditors to question the legitimacy of the upfront rent payment.
Similarly, the DPP’s offices in Kabarnet and Mombasa have faced criticism for being largely unused, with taxpayers footing the bill for empty spaces.
The DPP’s office in Kabarnet alone cost Sh12 million in wasted rent, while the Mombasa office continued to run up an annual rent bill of Sh11 million for an underused space.
The audit’s findings have ignited public outcry, with many questioning the government’s commitment to fiscal responsibility.
The revelations come at a time when the country is grappling with a tough economic climate, and citizens are calling for more stringent controls over public spending.
In response to the audit, the National Treasury has introduced new guidelines to curb the wasteful expenditure on government office leases.
The guidelines, issued on January 23, 2025, require all state agencies to obtain approval from their accounting officers before signing lease agreements.
Additionally, all office spaces must be valued by government valuers and receive clearance from the Cabinet Secretary for Housing, Alice Wahome.
All lease agreements will also be subject to review by the Attorney General, with copies to be filed with the National Treasury.
While these new measures are aimed at increasing oversight and ensuring better value for taxpayer money, many remain skeptical.
Critics argue that without meaningful enforcement and accountability, the new rules may do little to prevent further wasteful spending.
Auditor General Gathungu has reiterated that accounting officers are responsible for ensuring public resources are used efficiently and lawfully.
“The law requires accounting officers to ensure public resources are used in a lawful, economical, and authorized manner to prevent losses from wasteful expenditure,” she concluded.
