Members of Parliament (MPs) have questioned the National Treasury’s plan to spend Sh400 million refurbishing an office block before completing its purchase, warning that the move could put public funds at risk.
The concerns emerged after the National Assembly’s Finance and National Planning Committee approved the acquisition of the five-storey Jubilee Insurance House on Wabera Street in Nairobi from Jubilee Holdings for Sh2.5 billion. Parliament has already approved Sh1 billion through the 2025/26 Supplementary Estimates I, with the remaining amount expected to be settled in the 2026/27 financial year.
The building was vacated about a year ago after Jubilee Holdings relocated its operations to its larger headquarters in Upper Hill. However, legislators questioned why the Treasury intended to undertake costly renovations before finalising ownership of the property.
Committee chairperson and Molo MP Kuria Kimani criticised the proposal, noting that renovating a building that does not yet belong to the government exposes taxpayers to unnecessary risk. He said the committee had previously raised objections to the renovation plans and instead supported allocating additional funds in the next financial year to complete the acquisition first.
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Appearing before the committee on behalf of Treasury Principal Secretary Chris Kiptoo, Principal Administrative Secretary Samson Wangusi acknowledged the concerns. Kimani insisted that the Treasury must first secure ownership of the building before proceeding with any upgrades and sought assurances that the Sh400 million renovation budget would not inflate the final acquisition cost.
The office complex comprises four wings with spaces ranging from 220 square feet, making it suitable for businesses of varying sizes. Legislators also questioned why the Treasury appeared to disregard recommendations from the Budget and Appropriations Committee, which had advised against renovations until negotiations for the purchase were concluded.
Adding another layer to the debate, Wangusi revealed that the building is still undergoing valuation, indicating that its final purchase price could change. He explained that the Sh1 billion approved in the supplementary budget serves as an initial payment towards the acquisition.
Kitui Rural MP David Mboni and Homa Bay Town MP Peter Kaluma were among lawmakers who strongly opposed the refurbishment plans. Mboni questioned the logic of investing public money in a property not yet owned by the government and sought clarification on how the renovations would affect its valuation. Kaluma, meanwhile, faulted Parliament for approving expenditure on what remains private property, saying it was difficult to justify the use of taxpayer funds under such circumstances.
