NAIROBI, Kenya – The University of Nairobi has been given 14 days to produce documents explaining billions of shillings in unpaid pension contributions and taxes, as MPs demand evidence of how the institution plans to meet its obligations to staff and government agencies.
The directive followed a Wednesday, October 28, 2026, hearing before the National Assembly Public Investments Committee on Governance and Education, where Vice-Chancellor Prof. Eng. Ayub Njoroge Gitau and his management team faced questions over the university’s financial records.
The committee, chaired by Luanda MP Dick Maungu, was examining Auditor-General reports covering five financial years, from 2020/2021 to 2024/2025. Lawmakers challenged the university to provide documentary evidence supporting its explanations and proposed recovery measures.
At the centre of the inquiry is the university’s growing pension deficit, which Gitau told MPs had increased from approximately Sh5 billion to more than Sh10 billion.
The management is now under pressure to demonstrate how the liabilities accumulated, whether deductions made from employees’ salaries were remitted to the appropriate institutions, and how the outstanding amounts will be settled.
Sh1.4 Billion Pension Arrears in One Financial Year
Auditor-General findings cited during the session showed that the university had failed to remit approximately Sh1.4 billion in pension contributions and Sh50 million in Pay As You Earn (PAYE) taxes in the 2021/2022 financial year alone.
The figures prompted MPs to question the handling of statutory deductions and the extent to which the university had taken steps to clear its arrears.
Lungalunga MP Chiforomodo Mangale pressed the management to explain how pension liabilities had accumulated to billions of shillings.
“How did it happen that there was an accumulation of up to Sh5 billion?” Mangale asked.
He insisted that the committee wanted to establish the causes of the financial difficulties rather than accept general assurances from management.
“We are not here to sanitise issues. We need to get to the root of what happened,” he said.
Maungu similarly demanded supporting records, telling the university officials: “There’s nothing to support the good stories.”
Kasipul MP Boyd Were raised concerns over the unpaid PAYE taxes, warning that penalties and interest could increase the amount owed if the university failed to settle its obligations.
Central Imenti MP Moses Kirima also called for a comprehensive examination of the liabilities and the financial management decisions that contributed to their accumulation.
University Considers Using Assets to Address Pension Shortfall
Responding to the concerns, Gitau said the university had resumed remitting pension contributions in recent months and had begun paying retirement benefits to employees leaving service.
However, he acknowledged that the institution continued to face a substantial pension deficit and was working with pension scheme trustees to develop a recovery plan.
The university is considering using some of its land and other assets to generate funds towards addressing the shortfall.
Management also disclosed that the government owed the institution slightly more than Sh3 billion in outstanding funding and payments linked to the Higher Education Loans Board. The university said the amount had fallen from nearly Sh5 billion but continued to strain its finances.
Deputy Vice-Chancellor in charge of Finance, Planning and Development Prof. Josiah Omollo Aduda told MPs that the university had submitted a remedial payment plan to the Retirement Benefits Authority and was engaging the Kenya Revenue Authority over the unpaid taxes.
The committee, however, demanded correspondence with the agencies, payment records and other supporting documents to establish whether the measures had produced tangible results.
Funding Pressures and Staff Costs Under Scrutiny
The university attributed its financial difficulties to several factors, including the cost of collective bargaining agreements, declining student numbers, changes in government funding and the effects of the Covid-19 pandemic.
Acting Director of Finance Stephen Kimeli said the institution had introduced expenditure-reduction measures targeting personnel costs, post-retirement contracts and staff meal payments.
The university is also exploring ways to commercialise its assets to generate additional revenue. Management said a property valuation had been undertaken and proposals forwarded to the university council for consideration.
A staff strike was also cited as one of the factors affecting day-to-day revenue.
The explanations come amid wider scrutiny of the university’s financial stability. In a separate committee hearing earlier in October, MPs questioned management over an overall debt burden estimated at about Sh20 billion and demanded a clearer recovery strategy. The university has pointed to its substantial asset base as a potential source of revenue, but lawmakers have insisted that it must demonstrate how proposed interventions will translate into actual payments.
MPs Demand Evidence Within Two Weeks
The latest 14-day deadline requires the university to submit the outstanding records needed to verify its financial position and the progress made in addressing pension and tax obligations.
The committee intends to assess the documents alongside the Auditor-General’s findings to establish how the liabilities developed and whether management’s proposed measures are sufficient.
The outcome will have implications for employees awaiting pension benefits, staff whose deductions must be remitted and government agencies seeking payment of outstanding taxes.
