Kenya buys London High Commission building for KSh2.84bn to cut rent

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Kenya has bought the building that houses its High Commission in London for about £16.25m (about $21.7m), or roughly KSh2.84bn, as the government moves to own rather than rent its offices abroad.

A report by the National Assembly committee on Defence and Foreign Relations says the full price for the chancery at 45 Portland Place has been paid. The property was bought on a 999-year lease, and the mission is now waiting for title documents as the transfer and registration are completed.

KSh103m a year in rent saved

The purchase is expected to save the country about KSh103m in annual rent. Kenya had used the building on a 67-year lease that ran out in October 2021. After that, it negotiated to stay on at a rent of £350,000 (about $468,000) a year, well below the market rate of £568,250 (about $760,000), on the understanding that it would buy the property.

“Owning the Chancery in London supports prudent financial management by eliminating exposure to escalating rental costs in a high-value property, thereby delivering long-term cost efficiency and value for money,” the committee says in its report.

Two failed attempts before the deal

Getting to a sale took several years. The first attempt to buy a permanent chancery in London started in October 2021 but failed after the tender was declared unresponsive. A second attempt the following year was cancelled in May 2023 over procedural concerns linked to the political transition after the 2022 General Election.

Kenya already owns two other properties in London on a freehold basis. The house at 78 Winnington Road is the official residence of the High Commissioner to the UK, while 48 Connaught Drive is the residence of the Deputy Chief of Mission.

Part of a wider push to cut a KSh3bn rent bill

The London deal is part of a phased programme launched in September 2021 to buy offices and residences for Kenya’s diplomatic missions, spread over 15 years. Rent for missions abroad is estimated at more than KSh3bn a year, and cities such as Geneva, New York and London are among the most expensive places in the world to lease office space.

The government is also planning to rebuild or upgrade its missions in six African capitals, Cairo, Lusaka, Harare, Bujumbura, Juba and Kinshasa, through a public-private partnership. Under that model, private investors would design, finance and build chanceries, consular halls, ambassadors’ residences and staff housing, then maintain them over a concession period to recover their money before handing the properties back to the State.

The approach mirrors other recent moves by the Treasury to rely less on the Exchequer, including a push for State agencies to report on disposing of idle assets by December 31, as debt repayments take up a growing share of revenue.

What it means for Kenyans in the UK

For Kenyans living in Britain, the High Commission handles services such as passport renewals and documents for use back home. Those planning to renew can follow our guide on applying for a Kenyan passport online and how to check your passport application status. Diaspora savers can also read how to open a Kenyan bank account from abroad, and see the latest figures on diaspora remittances.