KNBS on the spot over Sh290,000 daily rent for unoccupied building
The national statistics agency is on the spot for spending Sh290,000 per day for rent of office space it never occupied.
The Kenya National Bureau of Statistics (KNBS) spent Sh163,083,000 between October 2017 and June 2019 yet it did not occupy the space.
Appearing before the National Assembly’s Public Investments Committee (PIC), KNBS director-general Macdonald Obudho agreed the figure was high but shifted the blame to the Ministry of Public Works which recommended the rental estimates.
He said Public Works gave the estimates during the procurement of the office space.
“I am in agreement that the rent is high. But the Ministry of Public Works gave the estimates. I was not there but my predecessor was Zachary Mwangi,” he said.
PIC raised the concerns following a query by Auditor-General Nancy Gathungu who questioned the irregular procurement of rental space by KNBS.
The statistics agency leased the office space for Sh105,300,000 per year from January 2018.
This includes service charge and was offered a 90-day grace period from the signing of a letter of offer to allow for preparations of the space prior to occupation.
PIC raised the concerns following a query by Auditor-General Nancy Gathungu who questioned the irregular procurement of rental space by KNBS.
Gathungu said KNBS leased office space at a total rent of Sh105,300,000 per year from January 2018 including service charge.
This includes service charge and was offered a 90-day grace period from the signing of a letter of offer to allow for preparations of the space prior to occupation.
The grace period was, however, not sufficient for the procurement process for the contractor and completion of the works to ready the building for occupation.
“As a result of a lease agreement that was skewed in favour of the landlord, the bureau paid rent for the period between October 2017 to June 2019 of Sh163,083,000 while the building remained unoccupied with no value for money achieved, hence misuse of public resources,” Gathungu said.
Consequently, she said the Bureau was in breach of law.
Obudho said the process of acquiring the office space was competitively done through an open tender, resulting in a lease agreement.
He also told MPs that the procurement was commissioned by his predecessor Zachary Mwangi who retired after the release of the 2019 Census results in 2020.
“It is abnormal and extremely immoral to pay these huge amounts without taking possession of the office space. The issue raised by the Auditor-General on value for money is serious,” Ahmed Abdisalan, the committee vice chairperson said.
