• About Us
  • Archives
  • SWG Registration
Samrack Media
Mahiga Homes
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
Samrack Media
No Result
View All Result

Kenya sinks Sh2 billion into New York consulate

samrack by samrack
March 13, 2017
in Consulates, Diaspora, Kenya, Kenya Diaspora News, News, U.S Diaspora
A A
0
Kenya sinks Sh2 billion into New York consulate
Share this
FacebookTwitterPinterestEmailWhatsAppLinkedIn
AMINA MOHAMED (PICTURED), THE FOREIGN AFFAIRS SECRETARY, DID NOT RESPOND TO QUESTIONS ON THE TRANSACTION. FILE PHOTO | NMG

Kenya sinks Sh2 billion into New York consulate

Kenya has acquired a Sh2 billion office space in New York as part of a plan that will see taxpayers shoulder a Sh6.9 billion burden over the next three years to buy properties for the country’s diplomats and embassies in different world capitals.

The Foreign Affairs ministry made the purchase public through documents tabled in Parliament last week.
Kenya’s Permanent Mission to the United Nations has assumed ownership of the property it had leased for many years.

The ministry said “the purchase of office space in New York has been concluded at a cost of Sh2 billion,” and that the building is now housing both the UN mission and the consulate.

A New York real estate magazine, The Real Deal, says the property acquisition was made in January at a cost of $18.3 million (Sh1.866 billion).
This is at least Sh100 million lower than the Sh2 billion quoted by the ministry based on the prevailing exchange rates at the time.

The Kenyan shilling opened the year at Sh102.50 against the US dollar and traded at a low of Sh104 end of January, but has now bounced back to where it was at the beginning of the year.

“In the world of mid-market New York City investment sales last week (January), Kenya’s Permanent Mission to the United Nations paid $18.3 million for a commercial condominium unit at 866 United Nations Plaza,” the magazine says, adding that the “mission currently leases their offices in the same building, and this is their first real estate acquisition.”

Amina Mohamed, the Foreign Affairs secretary, did not respond to questions on the transaction.

The ministry has more recently indicated a change of plan from lease of space to property purchase as rental costs for embassies and consulates shoot into billions of shillings annually.

Rent expenses by Kenyan foreign missions now account for a fifth of the ministry’s recurrent budget of Sh17.9 billion or Sh3.58 billion.

Kenya has 49 embassies and high commissions abroad alongside 27 consulates – a subdivision of the embassy that protects interests of Kenyans in foreign lands.

Besides Kenya’s consulate in New York, Nairobi has two other representations in the US.

They include an embassy in the capital, Washington, D.C, and a consulate-general in Los Angeles.

International relations experts said the permanent address for the Kenyan mission sends a powerful signal that Nairobi is keen to deepen relations with the UN and the US.

The ministry said it would be active in the property market abroad through purchase of chanceries, ambassadors’ residences and staff houses to cut down on rent costs.

It will spend Sh1.7 billion in the year starting July, Sh3 billion in 2018 and Sh2.2 billion in the year ending June 2020.

The recurrent budget has been rising over the past four years, leaving little cash for development projects such as opening new missions that are crucial for expanding Kenya’s diplomatic presence.

The developers of the 866 United Nations Plaza say on their website that space purchase is cost-effective compared to leasing.

“The annual cost of office condominium ownership is historically less than the cost of leasing. Current market lease rates far exceed the annual office condominium carrying costs, which include common charges, utilities and, if applicable, real estate taxes and mortgage payments,” the website says, adding that the complex proximity to UN offices is a plus.

The Foreign Affairs ministry has recently been hit by financial shortfalls, hampering efforts to open new missions and trade commission offices to shore up Kenya’s international relations and economic diplomacy.

It was expected to open trade commission offices in key commercial capitals such as New York, Shanghai, Frankfurt, Johannesburg and Brussels, but this has not been achieved.

Now, it plans fully fledged missions in Guangzhou (China), Dakar (Senegal) and Accra (Ghana).

According to the budget report, the ministry completed construction and refurbishment of its buildings in Pretoria (South Africa), London (UK), Mogadishu (Somalia), Abuja (Nigeria), Dar-es-Salaam, Islamabad (Pakistan) and Addis Ababa (Ethiopia).

The ministry bought an ambassadors’ residence in Geneva (Switzerland) and paid 40 per cent of the contract price, leaving the balance to be cleared in the next financial year.

The purchase price has not been disclosed in the budget figures.

The renewed purchase and expansion of properties in Kenya’s mission abroad is likely to ignite memories of the Tokyo embassy purchase scandal in which taxpayers are alleged to have lost Sh1.1 billion.

Source:http://www.businessdailyafrica.com/

Tags: Kenya has 49 embassies and high commissions abroad alongside 27 consulatesKenya sinks Sh2 billion into New York consulateKenya’s Permanent Mission to the United Nations paid $18.3 million for a commercial condominium unit at 866 United Nations Plaza
Previous Post

Hass Petroleum set to build Sh20Bn ‘Africa’s tallest building’ in Nairobi

Next Post

HOW CYBER GANG STOLE SH2.3M AND RUINED COUPLE’S WEDDING PLANS

Related Posts

Africa Day: My Vision for Payments in Africa – Olugbenga GB Agboola
Business

Africa Day: My Vision for Payments in Africa – Olugbenga GB Agboola

June 5, 2023
Kenyan Mother and Daughter Running Successful Restaurant in the US
Business

Kenyan Mother and Daughter Running Successful Restaurant in the US

June 5, 2023
bey Muthoni: Kenyan Diaspora psychologist helping immigrant Students at VCU
Business

Abey Muthoni: Kenyan Diaspora Psychologist Helping Immigrant Students At VCU

June 3, 2023
Pastor Catherine Wairimu Ng'ang'a
Diaspora

Githurai Pastor Accused of Defrauding Kenyans in the US of Sh6.8 Million

June 3, 2023
Former Citizen TV Journalist on Verge of Becoming Homeless in the US
Business

Former Citizen TV Journalist on Verge of Becoming Homeless in the US

June 3, 2023
Safaricom’s M-Pesa License Approval in Ethiopia Paves Way for Financial Inclusion and Innovation
Africa

Safaricom’s M-Pesa License Approval in Ethiopia Paves Way for Financial Inclusion and Innovation

June 3, 2023
Next Post
HOW CYBER GANG STOLE SH2.3M AND RUINED COUPLE’S WEDDING PLANS

HOW CYBER GANG STOLE SH2.3M AND RUINED COUPLE’S WEDDING PLANS

Please login to join discussion
ADVERTISEMENT
ADVERTISEMENT
Royal Gardens Ngong Royal Gardens Ngong Royal Gardens Ngong
ADVERTISEMENT
KIBS VILLA HOMES:(ABNB) Relax into Luxury: Monthly ABNB rates are negotiable Call:508-479-1517 / 254714428680 KIBS VILLA HOMES:(ABNB) Relax into Luxury: Monthly ABNB rates are negotiable Call:508-479-1517 / 254714428680 KIBS VILLA HOMES:(ABNB) Relax into Luxury: Monthly ABNB rates are negotiable Call:508-479-1517 / 254714428680
ADVERTISEMENT

Latest News

Africa Day: My Vision for Payments in Africa – Olugbenga GB Agboola

Kenyan Mother and Daughter Running Successful Restaurant in the US

Abey Muthoni: Kenyan Diaspora Psychologist Helping Immigrant Students At VCU

Githurai Pastor Accused of Defrauding Kenyans in the US of Sh6.8 Million

Former Citizen TV Journalist on Verge of Becoming Homeless in the US

Safaricom’s M-Pesa License Approval in Ethiopia Paves Way for Financial Inclusion and Innovation

Uhuru Changes Jubilee NDC Venue Amid Suspension

Kenyan Marathon Legend Eliud Kipchoge Awarded Ksh7.4 Million By 18-Year-Old Spanish Princess

Biden and Republicans hopeful of a deal

President Ruto Admits Losing Weight

We are grateful for your monthly or one-off donations To Samrack Media: Cash App No: 781-888-8770 $SAMRACK001

Money

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

by samrack
November 19, 2021
0

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency This week sees the launch of a new initiative to equip...

A simple guide to Government Bonds investing in Kenya

A simple guide to Government Bonds investing in Kenya

by samrack
September 17, 2021
0

A simple guide to Government Bonds investing in Kenya A treasury bond (T-bond) is a medium term to long term...

Politics

Businessman Awarded Sh126 Million for Land Forcefully Taken to Build SGR

Businessman Awarded Sh126 Million for Land Forcefully Taken to Build SGR

by samrack
April 8, 2023
0

Businessman Awarded Sh126 Million for Land Forcefully Taken to Build SGR The Environment and Land Court has awarded over Sh126...

Paul Rusesabagina's daughter tweeted a photo of him smiling.

Hotel Rwanda hero and government critic arrives in US

by samrack
March 31, 2023
0

Hotel Rwanda hero and government critic arrives in US Paul Rusesabagina, an outspoken critic of the Rwandan government, has arrived...

  • About Us
  • Archives
  • SWG Registration

© 2023 SAMRACK - Diaspora News & Updates; design by: Samrack.

No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events

© 2023 SAMRACK - Diaspora News & Updates; design by: Samrack.

Page generated in 1.101 seconds. Stats plugin by www.blog.ca