A dispute has erupted in Parliament after the National Treasury moved to set aside Sh400 million for renovation works on a Nairobi office block whose ownership has not yet been completed, with lawmakers warning that the plan could put public money at risk and distort the final cost of the deal.
The matter came up before the National Assembly Committee on Finance and National Planning, which is reviewing the planned acquisition of Jubilee Insurance House along Wabera Street from Jubilee Holdings at a proposed Sh2.5 billion.
Parliament has already approved Sh1 billion in the 2025/26 supplementary estimates as part of the purchase, while the remaining balance is expected in the 2026/27 financial year.
The five-storey building, previously occupied by the insurance firm before it relocated its operations to Upper Hill about a year ago, has now become a point of contention over the timing of government spending on its refurbishment.
Molo MP Kuria Kimani, who chairs the Finance and Planning Committee, questioned why renovation works were being considered before the property is fully acquired, saying the move exposes public funds to unnecessary exposure.
“The committee had raised issues about renovating a building that is not theirs,” he told National Treasury Principal Administrative Secretary Samson Wangusi, who appeared before the committee on behalf of Treasury Principal Secretary Chris Kiptoo.
“It is because of this that we allocated them another Sh1 billion in the 2026/27 financial year estimates to acquire the building.”
He further pressed the Treasury on whether the planned Sh400 million works could end up increasing the total purchase price.
“You will need to convince this committee how the Sh400 million will not affect the cost and, therefore, not double the payment.”
“You will need to convince this committee how the Sh400 million will not affect the cost and, therefore, not double the payment.”
The committee maintained that no renovation should take place until ownership is formally concluded, arguing that any early spending could complicate valuation and negotiations.
In response,PS Wangusi defended the acquisition process, saying the building is currently under valuation and that government intends to occupy part of it once the process is complete.
“The building is undergoing valuation,” he said, noting that the final figure may change depending on the outcome of the assessment.
He added that the Sh1 billion already approved in the supplementary budget serves as an initial payment towards the acquisition.
However, the explanation did little to ease concerns from other lawmakers, who questioned why public funds were being used on a property that remains privately owned.
MPs David Mboni (Kitui Rural) and Peter Kaluma (Homa Bay Town) raised concerns over the move, demanding clarity on the decision to proceed with refurbishment before purchase completion.
“Why renovate a building you do not own?” Mboni asked as he sought clarification on whether the planned works would influence the final valuation.
Kaluma also faulted the arrangement, saying Parliament itself bore responsibility for approving such expenditure.
“I don’t understand how we approved the use of public funds to renovate a private property,” the Homa Bay Town MP said.
The issue has also revived questions over earlier recommendations by the Budget and Appropriations Committee, which had advised against any renovation works until negotiations for acquisition are fully concluded.