The National Treasury has issued a circular directing all Ministries, Departments, Agencies (MDAs), and County Governments to ensure efficient use of public assets.
In Circular Number 3/2026, Treasury has directed the utilization of public assets, including land, buildings, road corridors, and government-owned facilities. This move will, among other uses, see idle public land leased to private investors.
“The purpose of this Circular is to provide policy and operational guidance to Ministries, Departments, and Agencies (MDAs) and County Governments on the optimal utilization, management, and stewardship of Government assets throughout their life-cycle,” read part of the cycle.
The move aims to eliminate waste, reduce fiscal pressures, and generate revenue from underutilized resources, while ensuring compliance with legal and policy frameworks.
Treasury Land and Building Utilization Measures
According to the Treasury, a significant portion of public land and buildings remains idle or underutilized.
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The treasury has instructed Principal Secretaries and Accounting Officers to identify, document, and value idle public land, and to integrate commercialization initiatives into their Asset Management Plans.
Proposed models include leasing, Public-Private Partnerships (PPP), joint ventures, licensing, and granting development rights, all subject to planning approvals and regulatory compliance.
For government buildings, the Treasury requires efficient allocation of office space in accordance with approved standards and the rationalization of excess or idle space.
Institutions are discouraged from leasing external office premises when suitable government-owned space is available, unless prior approval is granted.
Residential buildings are to be rented at market-aligned rates with periodic reviews to optimize revenue, and shared use of facilities across MDAs and counties is encouraged to reduce duplication and operational costs.
Compliance reports on land and building utilization are to be submitted to the National Treasury within ninety (90) days.
Commercialization of Road Corridors and Other Assets
Treasury has also directed road agencies and county governments to use the lawful commercialization of road corridors through:
- Way-leaves for utilities and linear infrastructure
- Advertising and outdoor media
- Service and commercial facilities through concessions or PPPs
- Tolling and user charges were approved frameworks
- Temporary use of excess road reserve land
- Smart corridor and digital infrastructure
According to the circular, the treasury states that all initiatives must comply with safety, planning, valuation, and procurement regulations as required by the law.
Other public assets, including railway lines, transport fleets, and conference facilities, have also been targeted for optimization.
Railway land and assets may be commercialized through passenger and freight concessions, station leasing, wayleaves, and tourism-related services, while still maintaining government ownership.
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Government transport fleets are to be pooled or shared, with vehicle acquisition and replacement guided by data-driven decisions.
Conference and training facilities may be leased, offered for event hosting, or managed under PPPs, ensuring adherence to service regulations and proper revenue accounting.
Reporting and Compliance Requirements
The directive follows Kenya’s Constitution (Articles 201 and 227), the Public Finance Management Act, 2012, the Public Procurement and Asset Disposal Act, 2015, the National Asset and Liability Management Policy, and applicable International Public Sector Accounting Standards (IPSAS).
To ensure accountability, Treasury requires that all commercialization initiatives, utilization strategies, and revenue updates be documented and submitted to the National Treasury within ninety (90) days.
Reporting should include
- Identified idle or underutilized land and Reference Numbers
- Proposed commercialization models
- Status of approval
- implementation timelines
