NAIROBI, Kenya – Kenya’s public universities are once again under scrutiny after the Auditor General exposed financial irregularities worth more than Sh3 billion, with some institutions unable to account for billions in expenditures.
In her latest audit report for the year ending June 30, Auditor General Nancy Gathungu flagged 10 universities for lacking proper records to support their spending.
She warned that the gaps reflect “systemic governance weaknesses” and a culture of poor financial discipline in higher education institutions.
The University of Nairobi (UoN) was the biggest culprit, failing to justify Sh1.8 billion – more than half the anomalies identified across all institutions.
The spending included Sh133 million on accommodation and catering, Sh660,000 in council allowances, and a staggering Sh1.6 billion on casual staff, without documentation on recruitment or master rolls.
Kenyatta University could not account for Sh102 million tied to USAID Hero projects, while Moi University had Sh34 million in unsupported council expenditures and Sh3 million in undocumented non-agricultural expenses.
Moi was also cited for Sh6.5 billion in unreconciled accounts, including Sh1.6 billion in undocumented pension contributions and a Sh231 million government loan left unpaid for over a decade.
Other universities flagged included:
- Jaramogi Oginga Odinga University of Science and Technology – Sh297 million unexplained spending, including Sh18.5 million for casual staff without recruitment records.
- Maasai Mara University – Sh263 million in questionable transactions, ranging from Sh142 million in debt repayments to Sh14 million in legal fees.
- Egerton University – Sh6.4 million in rent paid to landlords without contracts.
- University of Kabianga – Sh22 million in land leases with Telkom Kenya Ltd without valid agreements.
- Technical University of Kenya – Only four of 14 council meetings had recorded minutes, casting doubt on decision-making.
- Technical University of Mombasa – Sh289 million listed as work in progress with no certificates of completion.
Beyond the Sh3 billion in direct anomalies, the audit revealed wider weaknesses.
At least 16 universities had unreconciled accounts and unsupported balances totalling Sh21.3 billion, including unverified grants, student fees, investments, and loans.
The University of Nairobi alone recorded Sh9.8 billion in such balances.
The report also flagged abuse of imprest funds worth Sh31.6 million in six universities.
At Multimedia University, researchers used Sh3.65 million in imprests to make small procurements outside official procurement procedures.
At Laikipia University, records for Sh6.5 million lacked key details such as surrender dates, while at the Technical University of Kenya, one officer accounted for Sh7.6 million in imprests on behalf of multiple staff – a practice Gathungu said “completely undermined accountability.”
“The persistence of these issues undermines the accuracy, completeness and reliability of public universities’ financial reporting,” the Auditor General said.
The revelations come at a time when public universities are struggling to stay afloat under heavy wage bills, declining state funding, and ballooning debts.
MPs have repeatedly raised alarm over the financial health of the institutions, warning that mismanagement could push several into collapse.
