The Cabinet has suspended the leasing or renting of any new government office space until a nationwide audit of existing public offices and their utilisation is completed.
The resolution was adopted during a Cabinet meeting chaired by President William Ruto at State House, Nairobi, on Tuesday, June 30, as part of a broader plan to cut government spending and improve service delivery.
According to a Cabinet statement seen by Vantage Ke, the temporary freeze will give the government time to evaluate how current office spaces are being utilised before taking on any new lease agreements.
“In another cost-saving measure, Cabinet froze the leasing or hiring of additional office space pending an audit of Government office space and utilisation,” the statement read.
The Cabinet also directed that existing government offices be renovated and upgraded to improve efficiency and service delivery.
It noted that the government is “developing a comprehensive programme to renovate public offices and make them more efficient and fit for service delivery.”
The directive is part of a wider package of austerity measures aimed at ensuring prudent use of taxpayers' money across government institutions.
Concerns over public spending have continued to grow, with many Kenyans demanding greater accountability in the management of state resources.
A 2025 audit found that the government was losing millions of shillings by paying rent for office spaces that remained unoccupied.
Among the institutions flagged were the Ministry of Sports, the State Law Office, the Office of the Director of Public Prosecutions, the Commission on Revenue Allocation, and the Ministry of Micro, Small and Medium Enterprises, which collectively owed Ksh125 million in outstanding rent.
In May, Parliament instructed the National Treasury to stop allocating funds for renovations, partitioning, or structural alterations of leased office spaces.
The 2026/2027 Budget Summary further confirmed that financing for such modifications would be discontinued to curb unnecessary expenditure and promote more efficient use of public resources.
As a result, the government had begun considering alternative financing arrangements, including Public-Private Partnerships (PPPs), under which private investors would design, finance, build, and maintain government office facilities.
However, the latest Cabinet directive has effectively paused any further progress on those plans, signalling a stronger push to tighten public spending while reviewing existing and proposed office space projects.
