The National Assembly's Budget Committee has raised concerns over increased expenditure on rent by government institutions.
In its report on the 2025/2026 Budget, the committee stated that the government needed to change its policy to ensure prudent use of funds.
Consequently, the committee is seeking to have the National Treasury compel government institutions to set up their offices in government buildings.
"The Committee acknowledged that eliminating wasteful expenditure is a key fiscal consolidation strategy. However, many ministries, departments, and agencies continue to incur substantial costs for office rent," read the report in part.
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"To address this, there is a need for the government to reassess its office rent policy and explore options for housing these agencies within existing government-owned buildings. This approach could lead to significant cost savings and improve resource utilization in public administration."
As noted in the report, the committee is pushing for the new directive to come into force by the end of the year.
"The committee recommends that by December 31, 2025, the Cabinet Secretary for the National Treasury develop and implement comprehensive guidelines governing office rent for MDAs, prioritising the use of available government office space to reduce rent-related expenditures," read the report in part.
Various government institutions have offices across the country. Notably, some of the offices are based in posh estates where the rent is charged higher as compared to other locations.
Notably, in February last year, the State Department of Housing and Urban Development announced that it was seeking to lease office spaces in Westlands and Kilimani.
"The State Department hereby invites eligible property owners or their authorized agents for the leasing of office space in Westlands, the Central Business District (CBD), Community/Upper Hill, Hurlingham, Kilimani, and Milimani areas to express their interest in providing office space," read the notice in part.
"Interested bidders may access the tender documents from the State Department’s website www.housingandurban.go.ke. Bidders who download the tender documents from the website are required to provide their details by registering at the Office of the Head, Supply Chain Management Services, located on the 6th floor of Ardhi House, 1st Ngong Avenue, during normal working hours," read the notice in part. among other areas.
