MPs propose shared building for commissions to cut rental costs

The National Assembly’s Finance and National Planning Committee has proposed setting up a task force to identify and purchase a building to accommodate constitutional commissions and independent offices, in a move aimed at reducing public expenditure on rent.

The proposal follows concerns over the Commission on Revenue Allocation’s (CRA) monthly expenditure of more than Sh3.225 million on rent and service charges.

Speaking in Nairobi on Wednesday during the second day of a budget implementation review of the Commission, Committee Chairperson Kuria Kimani questioned the amount spent on office premises, particularly the service charge.

“We don’t think this is a very prudent use of public resources. Why should the Commission spend Sh700,000 on service charge alone, yet these are not premises that Commission staff live in?” Kimani wondered.

He said a shared building for the commissions and independent offices currently operating from rented premises would help reduce the financial burden on the government.

“We want to propose the establishment of a team to scout out for a building where all constitutional commissions and independent offices that are currently renting out can operate from. This will ultimately help us save a lot public money”, he added.

Led by Chairperson Mary Wanyonyi, the CRA informed the Committee that it spent Sh452.5 million of its approved Sh488.2 million budget for the 2025/2026 financial year, recording a budget absorption rate of 92.7 per cent.

According to a budget implementation report presented by Commission Secretary and Chief Executive Officer Roble Nuno, the unspent balance of KSh35.7 million was mainly attributed to savings under employee compensation.

The Commission said fiscal constraints affected the achievement of targets in several programme activities but maintained strong financial accountability, receiving unqualified audit opinions for its main account, staff mortgage account and staff car loan scheme account for the 2024/2025 financial year.

The CRA also recorded its third consecutive win in the Constitutional Commissions and Independent Offices category for Internal Audit Function at the Institute of Internal Auditors Kenya Awards. It was also named second runner-up at the 2025 Financial Reporting Awards.

“The recognition further demonstrates the effectiveness of the Commission's internal control and assurance mechanisms and its commitment to continuous improvement and adherence to professional internal audit standards,” Wanyonyi observed.

To address operational funding shortfalls, the Commission carried out two budget reallocations amounting to Sh12.405 million. It also reported one pending bill exceeding 90 days, valued at Sh659,300.

The Committee subsequently held a separate session with the Office of the Controller of Budget (OCoB), which called for an increased budgetary allocation to strengthen its oversight responsibilities.

Representing the Controller of Budget, Director General of Corporate Affairs Jacinta Masila thanked the Committee for supporting budget enhancements in the previous financial year but urged MPs to push for additional funding.

“We’re requesting that this Committee helps us an enhanced budget which will help strengthen our monitoring and evaluation role,” Masila urged.

The OCoB reported an overall budget absorption rate of 98 per cent for the financial year ended June 30, 2026. The office spent Sh933.09 million out of an approved budget of Sh948.09 million, leaving an unspent balance of approximately Sh15 million.

The office received KSh937.68 million in exchequer releases during the reporting period but said its operations were affected by the National Treasury's rejection of some budget reallocation requests.

Masila told the Committee that the office had sought to reallocate Sh64.995 million to support monitoring and evaluation, motor vehicle maintenance and office supplies, but only Sh28.2 million was approved.

The OCoB also reported a pending bill of Sh4.42 million that had remained unpaid for more than 90 days. The liability arose from a Kenya Revenue Authority tax assessment on staff gratuity payments covering November 2015 to June 2023.

The office further accumulated Sh9.25 million in unpaid liabilities for goods and services received by the end of the financial year, which it plans to settle in the 2026/2027 financial year.

Despite funding constraints that affected public sensitisation forums and staff recruitment targets, the OCoB said it continued to discharge its core oversight responsibilities.

Its achievements included processing 13,069 County Revenue Fund requisitions, reviewing 233 legislative bills and preparing eight technical reports for Parliament covering issues such as sovereign debt, privatisation and public finance.

During the meeting, the Committee also raised concerns over counties holding idle bank balances, saying the practice could deny other entities access to funds needed to support essential services.

“Please furnish us with a list of counties with ideal balances and the measures you’re putting in place to address this challenge,” Kimani directed.

Committee member Julius Rutto called on the OCoB to closely monitor counties that rely on bank overdrafts and incur substantial interest charges, warning that the practice contributes to delays in paying staff salaries.

In response, Masila urged the Committee to direct the National Treasury to take action against government agencies and county administrations that violate public finance regulations.

She said sanctions should be imposed in accordance with the provisions of the Public Finance Management Act.