Lawmakers have questioned a decision by the National Treasury to spend Sh400 million on renovations of an office block whose acquisition from a private firm has not been concluded, saying it exposes taxpayers to financial risk.
This comes after the National Assembly Committee on Finance and National Planning approved acquisition of the five-storey block from Jubilee Holdings on Wabera Street, Nairobi, for Sh2.5 billion.
The National Assembly approved Sh1 billion in the financial year 2025/26 supplementary estimates I as part of the acquisition plan, with the balance to be cleared in the 2026/27 year.
The building, known as Jubilee Insurance House, was vacated by the insurance company, which moved its operations to the larger head office on Kilimanjaro Avenue, Upper Hill area, about a year ago.
Molo MP Kuria Kimani, who chairs the Finance and Planning Committee, said executing costly structural renovations on a property before finalising the acquisition exposes public funds to risk.
‘The committee had raised issues about renovating a building that is not theirs,’ Mr Kimani told Mr Samson Wangusi, the Principal Administrative Secretary (PAS) at the National Treasury.
‘It is because of this that we allocated them another Sh1 billion in the 2026/27 financial year estimates to acquire the building.’
Mr Wangusi had appeared before the committee to defend the budget estimates for the National Treasury on behalf of Principal Secretary Chris Kiptoo.
‘We agree that you acquire the building first before undertaking any renovations. The figure of Sh400 million was a lot,’ said Mr Kimani as he loudly wondered whether it would increase the cost of acquiring the property.
‘You will need to convince this committee how the Sh400 million will not affect the cost and, therefore, not double the payment.’
The property has four wings, with office spaces starting from 220 square feet, making it suitable for small, medium and large enterprises.
It is not yet clear why the National Treasury went against a recommendation of the House Committee on Budget and Appropriations that blocked any renovations on the building until the government concludes negotiations to acquire it.
Mr Wangusi added a twist to the acquisition plan, saying the building is being evaluated and that the National Treasury will use two of its floors.
‘The building is undergoing valuation,’ said Mr Wangusi, an indication that it could either cost more or less, depending on the final valuation report.
According to the PAS, the Sh1 billion approved in the supplementary budget estimates in a down payment for the building’s acquisition, ‘is a mean’ allocation.
However, MPs David Mboni (Kitui Rural) and Peter Kaluma (Homa Bay Town) demanded to be informed why public funds were being expended for “wretched refurbishment on a building that is not yet owned by the government”.
‘Why renovate a building you do not own?’ asked Mr Mboni as he sought to know how the renovation would reflect in the valuation of the building.
Mr Kaluma laid the blame on lawmakers.
‘I don’t understand how we approved the use of public funds to renovate a private property,’ the Homa Bay Town MP said.