MPs probe financial irregularities at University of Nairobi as VC fined over audit queries
The university continues to face a serious financial burden, with management disclosing that its debts have climbed beyond Sh12 billion.
The acting Vice Chancellor of the University of Nairobi, Margaret Jesang’ Hutchinson, has been fined Sh500,000 for failing to provide clear responses to audit queries from the Auditor General. The institution faces multiple challenges, including a financial crisis and ongoing investigations into land lease deals.
The National Assembly's Public Investments Committee on Governance and Education imposed the fine, chaired by Bumula MP Wanami Wamboka, during a session where Hutchinson appeared to answer questions about various financial years.
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“I want to invoke the Standing Orders and fine you Sh500,000, payable in two weeks. The cheque should be addressed to the Clerk of the National Assembly, money which should not come from the institution but from your own pocket,” Wamboka ruled.
This came just as the Ethics and Anti-Corruption Commission (EACC) revealed that it is investigating the university over the alleged irregular leasing of land in several locations, including 100 acres in Kibwezi, 40 acres behind ANP hostels, and parcels near Dusit Hotel and Arboretum Drive.
Hutchinson confirmed that the commission had written to her office and that a response had already been sent.
“Yes, I can confirm that the letter was addressed to the acting Vice Chancellor, which we responded to on Monday,” she told the committee.
Financial burden
Meanwhile, the university continues to face a serious financial burden, with management disclosing that its debts have climbed beyond Sh12 billion.
This includes Sh7.8 billion in unpaid pension dues, Sh4 billion owed to KRA, Sh194 million to suppliers, and Sh315 million to Absa Bank.
The university is also under fire for having created between 14 and 20 senior management roles without following due process. The appointments reportedly lack necessary documentation, raising questions over governance at one of the country’s leading learning institutions.
The committee session also turned attention to the University of Embu, where Vice Chancellor Prof Daniel Njiru was ordered to personally repay Sh3.8 million for spending university funds without the required approval. According to the committee, the money had been allocated for the implementation of a Collective Bargain Agreement (CBA) but was diverted to other uses.
“It cannot be that the Vice Chancellor decides how much to spend and how much not to spend, without approval. You have no such powers to change what the money was meant for,” Wamboka said, noting that the committee found the VC had misused his powers.
The misuse of the funds was first flagged by Auditor General Nancy Gathungu in her 2013/14 audit report. The funds had originally been provided by the Ministry of Education when the university was still a constituent college of the University of Nairobi.
“Collective Bargain Agreement (CBA) outstanding balance of Sh81.5 million had not been refunded back to the Ministry of Education as previously directed as at time of audit,” the report said.
In his defence, Njiru said the university had received verbal approval to redirect the funds to improve infrastructure. “Since the university was newly established and had no arrears to settle, these funds were reallocated to other budget votes through a budget review and utilised to refurbish the dilapidated facilities inherited from its predecessor,” he explained.
Both cases have raised concerns about financial oversight in public universities, prompting Parliament and investigative agencies to increase pressure on the institutions’ management to comply with proper procedures.
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