A committee of the National Assembly has directed the Kenya National Bureau of Statistics (KNBS) and the Kenya Institute for Public Policy Research and Analysis (Kippra) to spend Sh1 billion that has been lying idle in interest-earning accounts to acquire an office and save on rent.
The Finance and National Planning Committee said the KNBS and Kippra continue to hold Sh800 million and Sh200 million, respectively, in interest-earning accounts from 2022.
“The committee noted with concern that these substantial idle balances have remained unutilised for a considerable period despite ongoing expenditure pressures, particularly on office accommodation and rent within State agencies under the State Department for Economic Planning,” Kuria Kimani, who chairs the committee, said in a report seen by the Business Daily.
“In this regard, the committee is of the view that the State agencies (semi-autonomous government agencies - SAGAs) under the State Department for Economic Planning should strategically use the funds in their interest-bearing accounts as seed capital for the acquisition of a government-owned office building.”
In a report on the scrutiny of the National Treasury’s budget on the Supplementary Estimates 1 of 2025/26, Mr Kimani told the Budget and Appropriations Committee (BAC) that the acquisition of a joint property by the two SAGAs would reduce continued reliance on leased office space, minimise recurring rent expenditures, and promote prudent use of public resources.
Mr Kimani told BAC, chaired by Alego Usonga MP Samuel Atandi, that pooling the resources could support the government’s ongoing plans to acquire office space, enhance asset ownership, and ensure long-term cost savings, while improving operational efficiency and accountability in the management of public funds.
“This would also align with public financial management principles that encourage the optimal use of idle funds and the investment in assets that provide sustainable value for money for the government,” Mr Kimani said in the report to BAC.
The KNBS and Kippra have been seeking budgetary allocations for the acquisition of office space, the purchase of land, or the construction of buildings.
Rent burden
The State Department for Economic Planning, while appearing before the Finance and Planning committee to defend its supplementary budget, cited the high cost of rent arising from leased offices for the KNBS and Kippra staff.
“Officers from the State department are currently operating from inadequate and scattered offices with limited working tools and equipment,” Economic Planning PS Boniface Makokha said while defending the State Department budget before the Mr Kimani-led committee.
“The scattered and uncoordinated teams have led to loss of time, reduced productivity, weak synergy, and may result in loss of crucial legacy systems for the sub-sector.”
This is the second time the committee has recommended that the State Department acquire or construct office space for its agencies, after it emerged in the 2024/25 financial year that Sh296 million is spent annually on rent.
At the time, MPs heard that all semi-autonomous government agencies under the State Department were leasing office space.
Rising costs
The agencies include KNBS, Kippra, the National Council for Population Development (NCPD), the African Peer Review Mechanism/New Partnership for Africa’s Development (APRM/NEPAD), the Vision Delivery Secretariat (VDS), and the National Government Constituencies Development Fund (NG-CDF).
In 2024, KNBS was reported to be paying Sh125 million annually in rent, Kippra Sh34 million, and the Nepad Secretariat Sh11 million.
The NG-CDF board, based at Ukulima House, spends Sh47 million annually on rent, while the National Council for Population Development pays Sh32 million per year.
The Kenya Vision 2030 Secretariat leases office space at an annual cost of Sh26 million.
The State Department for Economic Planning is housed at the National Treasury but runs a Monitoring and Evaluation department from Bruce House at a cost of Sh9.6 million annually.
Former Principal Secretary for Economic Planning James Muhati told MPs that the department also leases space at the Absa Bank building at Sh12 million annually, bringing total rental costs to Sh296 million per year.
Mr Kimani questioned why KNBS had failed to utilise Sh800 million held in a fixed deposit account at a commercial bank to acquire or construct office space.
“If you save Sh296 million for five years, you will have Sh1.5 billion, which is enough to buy or build your own office to accommodate all your semi-autonomous government agencies,” he said.
