NAIROBI, Kenya – The construction of the Kenya Industrial Research and Development Institute’s (KIRDI) headquarters, a major project aimed at driving industrial research and innovation, has come to a halt since September 2022 due to financial difficulties and unpaid contractor dues.
The project, which was initially slated to be completed by 2016, is now entangled in delays, cost overruns, and uncertainty about its future.
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 ballooning to Sh5.4 billion due to prolonged delays and rising construction costs.
Despite these investments, the headquarters, which was once envisioned as a state-of-the-art facility for Kenya’s top technology minds, remains largely unfinished at the junction of Nairobi’s Lusaka and Dunga roads in South B.
The ambitious plan for the building included three tower blocks designed to withstand earthquakes and high winds, as well as commercial spaces, an amphitheatre, lecture rooms, restaurants, and accommodation facilities resembling a three-star hotel.
The facility was meant to promote Kenya as a manufacturing hub, providing a space for industrial research and development.
However, the project has faced numerous setbacks, including the termination of the contract in September 2022, with the construction estimated to be only 80% complete by that time.
“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.
Despite these setbacks, the KIRDI board of directors remains hopeful, proposing a public-private partnership (PPP) to complete the remaining work.
However, the plan was eventually shelved in favor of seeking additional funding from the Exchequer.
In January 2025, Industry Principal Secretary Juma Mukhwana sent a letter to National Treasury Principal Secretary Chris Kiptoo, requesting an additional Sh2.6 billion to finalize the project.
Mukhwana argued that completing the facility would save the government Sh175.9 million annually in rent for agencies like the Anti-Counterfeit Authority and Kenya Accreditation Service, which currently lease office space.
“We propose a phased approach, with the goal of handing over the site by July 1, 2026,” Mukhwana explained.
The Treasury has pledged Sh1 billion in the 2025/2026 financial year and Sh1.6 billion in 2026/2027 to help complete the KIRDI headquarters.
Once completed, the facility is expected to generate about Sh600 million annually in rent from leased spaces, which would contribute significantly to the sustainability of the project and revive the dream of positioning Kenya as a regional manufacturing powerhouse.
