Nairobi — National Treasury has flagged widespread underutilisation of public assets despite years of substantial investment.

An assessment by the Ministry identified idle and underused assets, duplication, weak maintenance practices, and poor asset planning across public sector entities.

"These inefficiencies result in avoidable fiscal pressures, increased recurrent expenditure, and undermine Government fiscal consolidation objectives and public financial management reforms," the Treasury said in a circular sent to Cabinet Secretaries, County Governors, and Principal Secretaries.

To address the gaps, the Treasury has directed Principal Secretaries and accounting officers to identify and document all idle or underutilised public land under their custody and explore commercialisation options such as leasing, Public-Private Partnerships (PPPs), development rights, and joint ventures.

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The directive also calls for optimisation of government buildings through leasing and rationalisation of office space to eliminate excess or idle capacity.

"Rent for Government-owned residential buildings shall be set in line with prevailing market rates, subject to approved Government housing policies," the circular stated.

"Rental rates shall be reviewed regularly to ensure transparency and revenue optimisation, but at least once every five years."

Other targeted areas include commercialisation of road corridors and way-leaves for utilities and infrastructure, advertising and outdoor media, tolling and user charges, as well as state-owned conference and training facilities, vehicles, and railway assets.

"Principal Secretaries and accounting officers shall ensure compliance with this Circular and timely submission of accurate reports," the Treasury said, adding that strict adherence is key to improving efficiency in public service delivery and safeguarding public resources.