The Kenya National Examinations Council has resorted to using money saved from rent to continue construction of its long-delayed headquarters in South C, Nairobi, due to ongoing budget shortfalls from the National Treasury.

According to Auditor-General Nancy Gathungu, Knec redirected rent savings towards construction works at the incomplete Mitihani House after relocating all staff from five different offices in Nairobi into the building.

The audit, covering the year ending June 2024, indicates that the Council used internal savings to complete some of the floors in Towers A and B so that employees could move in.

“As at the time of the audit in December, 2024, the project was still incomplete although the Council had done some work through funds raised internally from savings of rent, to ensure usability of some floors in Towers A and B. All staff of the council are now housed at South C, from the previous five locations around Nairobi,” said Gathungu.

Mitihani House has been under construction since 1986, making it one of the longest-running public projects in the country. Despite decades of planning and budgeting, the project remains incomplete nearly four decades later.

The audit shows that by the end of June 2023, Knec had spent Sh95.2 million on staff housing and office space, including Sh12.19 million paid to the National Housing Corporation for offices occupying three floors.

The Council decided to vacate those premises and move operations to South C in an effort to save on rent and redirect the funds into finishing the building.

Despite the shift, the Ministry of Education has since extended the project’s completion deadline to June 2027. If this timeline holds, the construction will have taken approximately 41 years.

Gathungu expressed concern that continued delays in completing the Mitihani House project deny taxpayers value for money. She also warned that the longer the works drag on, the more costs are likely to rise.

Initially budgeted at Sh248.9 million, the project cost has ballooned nearly 18 times to Sh4.67 billion, raising questions over prolonged inefficiencies and escalating expenses.