Taxpayers are bearing the burden of millions in rent for government offices that remain empty, a new audit report has revealed.

The findings expose a growing trend of wasteful public spending, even as the country faces rising economic challenges and calls for responsible financial management.

The audit shows that five state agencies have accumulated a total of Sh125 million in rent claims for office spaces that are not in use.

These include the Sports Department, the State Law Office, the Office of the Director of Public Prosecutions (DPP), the Commission on Revenue Allocation (CRA), and the department handling Micro, Small, and Medium Enterprises (MSMEs).

One of the most glaring cases involves the Sports department.

The government spent Sh98 million renovating three floors of Nairobi’s Maktaba Kuu Building to house the department.

However, the renovated offices remain unoccupied, and instead, the Cabinet Secretary and Principal Secretary are operating from Talanta Plaza.

In a report covering the period up to June 30, 2024, Auditor General Nancy Gathungu said her team visited the offices in September last year and found them unused.

"No satisfactory explanation was provided for the failure to occupy the space," she said.

Even more concerning is that Talanta Plaza, which is owned by the Sports Fund, has five vacant floors itself, raising questions about why the department opted to stay there despite the idle space at Maktaba Kuu.

"In the circumstances, the regularity and value for money to be realised from the expenditure of Sh98 million couldn’t be confirmed," Gathungu noted.

The report also flagged other departments for similar practices.

The State Law Office paid Sh20 million for unoccupied space at Central Bank Pension Towers.

According to the Auditor General, this goes against the principles of prudent financial management as stated in the Public Finance Management Act, 2012.

"Payment of rent for unoccupied office space is against the principles of prudent financial management and is contrary to the Public Finance Management Act, 2012," Gathungu said.

There was also a Sh2 million payment for expired leases on regional offices, with no benefit received by taxpayers.

The MSMEs department signed a six-year lease agreement on June 30, 2023, with a local company, agreeing to a Sh22 million payment for a new office.

Despite being given a three-month grace period to fit out the space, the offices remained empty 15 months later.

Gathungu’s report shows that by the time the audit closed in November last year, the department still hadn’t moved in.

She also questioned why the MSMEs department ignored available space at the Kenya Institute of Business Training building, which was only 60 percent occupied.

"No explanation was given why the state department has not taken up the unoccupied space in the KIBT building but chose to lease office space elsewhere," the report reads.

The Commission on Revenue Allocation also came under scrutiny after paying Sh21 million upfront for office space at Prism Towers.

Although the lease started on July 1, 2023, the commission did not begin procurement until three months later.

The contract was only awarded in December 2023, five months after the lease was signed.

"In the circumstances, value for money paid on rent of Sh21 million couldn’t be confirmed," said Gathungu.

Similar issues were found in the Office of the Director of Public Prosecutions.

In Kabarnet Town, three-quarters of the space rented by the DPP’s office remained unused, leading to a waste of Sh12 million.

Another office in Mombasa was also mostly empty, costing taxpayers Sh11 million a year.

Gathungu stressed that accounting officers are required to prevent such losses by using public funds lawfully and economically.

"The law requires accounting officers to ensure public resources are used in a lawful, economical and authorised manner to prevent losses from wasteful expenditure," she said.

The revelations have sparked criticism of the government’s management of office space, with calls for better controls to avoid similar waste in the future.

In response to the findings, the National Treasury has issued a directive requiring all state agencies to seek approval from their accounting officers before leasing new office spaces.

These approvals must be based on proper valuation by government valuers and must be cleared by the Cabinet Secretary for Housing, currently Alice Wahome.

As of January 23 this year, all new lease agreements must also be reviewed by the Attorney General, and a copy of the lease must be filed with the National Treasury.

This move is seen as a step toward tightening oversight on public expenditure.

While the country continues to grapple with economic difficulties, the audit has highlighted a need for state departments to reassess their office space requirements and avoid unnecessary leases.

Public pressure is mounting for accountability, especially as Kenyans continue to shoulder the cost of government missteps.