NAIROBI, Kenya – The Kenya National Bureau of Statistics (KNBS) and the Kenya Institute of Public Policy Research and Analysis (KIPPRA) have come under intense scrutiny from Members of Parliament over their combined annual expenditure of more than Sh300 million on office rent, even as government-owned buildings lie unused.
Parliamentarians have condemned the spending as wasteful and called on the National Treasury to develop a stringent policy framework by December 31 to regulate rental expenses across all ministries and state agencies.
The policy will also prioritize the utilization of existing government office spaces before leasing private properties.
A report by the National Assembly’s Finance and National Planning Committee, presented to the Budget and Appropriations Committee, highlighted the high rental costs incurred by the two semi-autonomous government agencies (SAGAs) under the State Department for Economic Planning.
The report noted that KNBS was the largest renter, paying Sh125.1 million in rent for its headquarters at Real Towers in Upper Hill during the year ending June 2023.
The bureau also spent an additional Sh5.4 million on rates and related expenses, up from Sh3.2 million the previous year.
The lease agreement includes biennial rent reviews pegged to prevailing market rates.
This heavy rent burden coincides with alarming signs about KNBS’s financial health.
Auditor General Nancy Gathungu revealed that KNBS has been operating at a deficit, drawing down its financial reserves to Sh1.3 billion from Sh8.7 billion over the past five years.
“Although management claims it can sustain operations for now, without robust strategies to reverse the trend, KNBS faces significant financial risks in the near future,” Gathungu warned.
KIPPRA, which operates from Bishop Garden Towers in Upper Hill, spent Sh3.8 million on rent during the 2023/24 fiscal year.
The think tank has struggled to acquire land for a permanent headquarters after the National Land Commission halted a planned project due to land allocation disputes involving veterinary services land.
Despite these challenges, both agencies continue to receive significant government funding — KNBS was allocated Sh1.3 billion in the 2022/23 financial year, while KIPPRA received Sh527.9 million for 2023/24.
In light of these findings, MPs have urged the Treasury to enforce clear guidelines on office rental expenditures and compel all government entities to fully utilize idle public buildings before seeking costly leases from private landlords.
