Who Profited from Sh1 Billion Public Furniture Contracts?

On February 21, 2024, Nakuru County initiated the budgeting process for the forthcoming financial year and awarded a contract to Taigon Enterprises Ltd for the renovation of their headquarters.

Reports indicate that Taigon Enterprises could have received Sh950,000 for the job, however, this plan may have hit a snag following an announcement by Treasury Cabinet Secretary Njuguna Ndung'u last Thursday. Prof. Ndung'u revealed plans to suspend office renovations and furniture purchases in the 2024/25 financial year as part of austerity measures. These measures have brought to light the wasteful practices of government institutions, where bureaucrats have been spending billions on luxurious furniture and fittings to enhance their office comfort, all at the expense of overburdened taxpayers.

Data from the Public Procurement Information Portal (PPIP) indicates that in the financial year ending June 30, the government spent at least Sh1 billion on furniture and office renovations. However, this figure likely underestimates the true extent of spending as most government institutions have not published their procurement information on the portal. The limited data available has revealed some of the government's top suppliers with Fast Choice Ltd emerging as the largest furniture supplier. Owned by Jesse Reeves Kiarie, Fast Choice supplied furniture worth Sh63.2 million to 20 government bodies in the financial year ending June 2024, and Sh146.4 million to at least 38 government institutions in the previous year.

Interestingly, the proposed suspension of furniture purchases and renovations comes amid plans for a Sh1.5 billion-a-year facelift of State House, expected to be completed by 2027. In the current financial year, State House has already spent at least Sh6.1 million on minor repairs and materials while in the 2022/23 financial year, it spent at least Sh13.5 million on similar expenses. CEO of the Institute of Economic Affairs Kwame Owino has commented on Prof Ndung'u's suggestion, stating that it could help curb the excessive spending habits of government institutions.

Owino emphasizes the need for a clear policy on furniture replacement, noting that new furniture is often purchased when officials take office with the fate of replaced items remaining unclear. He argues for the implementation of caps on furniture replacement to redirect billions of shillings often spent due to personnel changes in top offices. The issue is further highlighted by recent furniture purchases made by West Pokot County, which spent Sh29.4 million, and Nyandarua County, which spent Sh16.5 million on furniture for their respective MCAs and support staff. In some cases, individual chairs can cost upwards of Sh200,000, as evidenced by the Kenya Plant Health Inspectorate's Sh700,000 expenditure to furnish the managing director's office.

Busia County emerged as the largest spender on renovations among those that have made their data available, allocating Sh29.9 million to Walji Construction for the refurbishment of the governor's lounge. The Judiciary was the second-highest spender, investing Sh20.1 million in the refurbishment and partitioning of its offices in Karen, Nairobi. The Commission on Revenue Allocation (CRA) recently moved into new offices at the Prism Towers in Nairobi, spending Sh117 million on partitioning three floors. Additionally, the Office of the Prime Cabinet Secretary spent Sh13.8 million on furniture and office renovations.

However, proposed amendments to the controversial Finance Bill, 2024 by the National Assembly's Budget Committee have led to a projected Sh200 billion revenue shortfall. As a result, the Treasury is considering further expenditure cuts beyond the furniture and renovations ban, which could impact the luxuries that some government bureaucrats have become accustomed to.