Embassy rental costs fall 60pc in six months

The cost to taxpayers for renting offices for diplomats fell by Sh749.3 million in the six months to December 2019, reflecting a shift in policy from leasing to purchase of space.

The Controller of Budget (CoB) in a report for the first half of the fiscal year ending June, says that the rent on embassy and consulate offices fell by 59.7 percent from Sh1.3 billion in a similar period in December 2018.

The change in policy by the Ministry of Foreign Affairs to property purchase was informed by a rise in rental costs for embassies and consulates in the world’s major capitals.

The report shows that overall, there was a fall in spending on office rent across all ministries and departments in 2019, a reduction of 31.7 percent to Sh2.4 billion from Sh3.6 billion in a similar period in 2018.

“In the period under review, travelling expenditure recorded Sh8.9 billion, followed by Sh2.6 billion on hospitality and Sh2.4 billion rentals and rates for non-residential buildings,” CoB said in the half-year report.

While the number of diplomatic and consulate space bought by the state since 2017 remains unclear, construction of the office and residential space for Kenya’s high commissioner to South Africa at Sh40.54 million is set for completion this month.

Foreign Affairs ministry had in 2017 said the taxpayers would spend Sh6.9 billion in three years from July 2017 to purchase the chanceries, ambassadors’ residences and staff houses and cut down on rental costs.

The plans to cut on rental costs however suffered a setback in November last year when Parliament denied the ministry Sh254 million meant for renovation of the dilapidated and ageing Chancery in New York and the High Commission in London, forcing the ministry to keep renting space.