State Releases Sh3.4 Billion to Complete Longest Stalled Nairobi Skyscraper

Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui led a high-level delegation to inspect the stalled Kenya Industrial Research and Development Institute (KIRDI) Techno Centre in South B, Nairobi, signaling a renewed state push to finish the project.

The delegation, which included Industry Principal Secretary Dr. Juma Mukhwana, KIRDI Board Chairman Eng. Peter Mositet, and KIRDI Chief Executive Officer Dr. Kelvin Khisa, reviewed the civil works at the site on Tuesday.

Treasury officials have allocated Sh3.4 billion in the 2026/2027 financial year, a funding injection that is expected to finally push the multi-billion-shilling complex toward completion by the end of 2027.

Construction originally began in February 2013, but it faced severe funding shortfalls, contractor disputes, and delayed payments, which left an 18-storey concrete structure standing largely incomplete for over a decade at the Lusaka Road junction.

The total cost of the facility has now escalated to approximately Sh8.56 billion, which is a steep rise from the initial budget of Sh3.9 billion.

Once fully operational, the state-backed facility will serve as a hub for advanced research laboratories, pilot manufacturing plants, product testing facilities, and business incubation centres.

Cabinet Secretary Kinyanjui stated during the tour that the government wants to reposition the institute, transforming it into a premier regional facility for industrial research, skills development, and innovation.

The National Treasury had previously disbursed Sh500 million to initiate critical recovery works on the site, helping to revive active construction after the previous contractor abandoned the location in late 2022.

The new allocation aims to cover the outstanding technical installations, including specialized nanotechnology laboratories, which require a dedicated wastewater treatment plant, incinerators, and bulk fuel storage.

Completing the project will also enable the state to save Sh175.9 million spent annually on leasing office spaces for other government departments, such as the Anti-Counterfeit Authority (ACA).

Through common-user facilities, local innovators and small businesses will gain access to modern industrial equipment, which allows them to refine their products and acquire technical expertise before entering competitive commercial markets.

The Ministry of Investments, Trade and Industry (MITI) is also working on credit facilities to link graduates of the institute's training programs with lenders, including the Kenya Development Corporation (KDC) to scale their enterprises.

This strategic intervention comes at a time when the government under President William Ruto is emphasizing local manufacturing, value addition, and job creation as central pillars of national economic policy.

With a new contractor now actively on site, engineers are racing against time to install heavy industrial machinery, testing tools, and office fixtures before the projected 2027 handover deadline.

For Nairobi residents and industrial stakeholders, the completion of this long-delayed skyscraper will mark the end of an eyesore, although full integration of its laboratories will take time.

According to reports from Auditor-General Nancy Gathungu, taxpayers had already spent billions on the stalled structure, which suffered from non-performance and payment delays before the previous contract was terminated.

The institute's board had previously explored a public-private partnership model to salvage the stalled project, but they eventually resolved to secure direct funding from the exchequer to retain complete state ownership.