Kenya could lose Ksh2 billion that had already been disbursed for the purchase of a Chancery in London, the United Kingdom. According to a Report on the Consideration of Supplementary Estimates No. 1 for the Financial Year 2024/2025, it was reported that Kenya had sought to buy the Embassy House at an estimated cost of Ksh2.9 billion.  

After making a Ksh2 billion payment, the project was cancelled as part of austerity measures proposed by President William Ruto’s administration. The National Treasury instituted the austerity measures after Kenyans rejected the Finance Bill 2024 that had sought to raise Ksh340 billion. 

The National Assembly Committee on Defence and Foreign Relations wondered why the project was cancelled with only a Ksh900 million payment remaining. 

It was indicated that Kenya was bound to incur financial losses should the National Treasury not reconsider financing the project.  

Further, Kenya could expose itself to international litigation due to negating an earlier agreement.

“The Committee noted a reduction in the allocation for the Purchase of a Chancery in London from Ksh900 million to zero is not justifiable, given that a suitable property has already been identified, procurement has been finalized, and the successful bidder is notified,” the report indicated. 

“Reversing transactions at this stage will have serious legal, reputational, and financial implications. The State Department has already committed Ksh2 billion and is seeking a balance of Kshs.900 million to complete the purchase.” 

Apart from halting the purchase of the Chancery, the National Treasury further halted the renovation and upgrading of the ambassador’s residence in London.  

In total, the National Treasury halted the construction and purchase of diplomatic buildings in 14 cities across the world. 

The cities affected include; Pretoria (South Africa), Mogadishu, (Somalia), Washington DC (United States), London (United Kingdom), Abuja (Nigeria), Dar es Salaam (Tanzania), Islamabad (Pakistan), Rome (Italy), Kinshasa (Democratic Republic of Congo), Addis Ababa (Ethiopia), New York (United States), Lusaka (Zambia), Kampala (Uganda), and Hague (Netherlands). By Kioko Nyamasyo, Kenyans.co.ke