Auditor General flags public universities over Sh62 billion wage bill
According to the report, the institutions used 62 per cent of their total Sh100 billion revenue on personnel emoluments, leaving little for development and operations.
Over 40 public universities have been flagged by the Auditor General for spending more than Sh62 billion on staff salaries in the 2023/2024 financial year, raising concerns over financial discipline and compliance with fiscal regulations.
According to the report, the institutions used 62 per cent of their total Sh100 billion revenue on personnel emoluments, leaving little for development and operations.
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Auditor General Nancy Gathungu, in her report for the financial year 2023/2024, expressed concern that the current liabilities reported by public universities have been steadily increasing over the years.
“This continued growth suggests that institutions are consistently failing to meet their short-term obligations, including trade payables, statutory deductions and other operational expenses,” reads the report.
Personnel emoluments include all forms of financial compensation and benefits an employee receives for their work, such as wages, salaries, bonuses, commissions and allowances like travel, sick pay, or leave pay.
Among universities with the highest wage bills are the University of Nairobi (Sh8.6 billion), Kenyatta University (Sh6.6 billion), Jomo Kenyatta University of Agriculture and Technology (Sh5.1 billion), Moi University (Sh4.5 billion) and the Technical University of Kenya (Sh3.9 billion).
Others include Egerton University (Sh2.8 billion), Maseno University (Sh2.5 billion), Masinde Muliro University of Science and Technology (Sh2.4 billion), University of Eldoret (Sh2 billion), Technical University of Mombasa (Sh1.6 billion), Maasai Mara University (Sh1.3 billion), Dedan Kimathi University of Technology (Sh1.2 billion), University of Kabianga (Sh1.1 billion), Pwani University (Sh1 billion), Meru University of Science and Technology (Sh1 billion), Multimedia University of Kenya (Sh1 billion), Machakos University (Sh1 billion) and South Eastern Kenya University (Sh993.6 million).
The report, which is the most recent by the Auditor General, also highlights recurring weaknesses in legal compliance and institutional oversight, highlighting the need for stronger governance frameworks, enhanced accountability and adherence to statutory and regulatory obligations across public universities.
The identified issues include non-adherence to the one-third basic salary requirement, non-compliance with laws on staff ethnic composition, non-compliance with legal requirements on acting appointments and breaches of fiscal responsibility principles on wage bills.
Regarding fiscal responsibility, the report shows that 39 public universities recorded employee costs exceeding 35 per cent of their total revenue, contrary to the Public Finance Management (National Government) Regulations.
The Technical University of Kenya was found to have spent more on staff compensation than it earned, with its wage bill equivalent to 116 per cent of its total annual revenue. It was followed by Taita Taveta University at 87 per cent and Technical University of Mombasa at 83 per cent.
The report noted that these spending patterns violated fiscal responsibility principles and limited universities’ ability to invest in infrastructure, research, and other operational needs.
In addition, an audit of payroll records for the year ended June 30, 2024, revealed that 12 public universities breached the Employment Act, 2007, by paying more than 313 employees' net salaries amounting to less than one-third of their basic pay.
The affected institutions include the University of Nairobi (31 staff), University of Kabianga (7), Masinde Muliro University of Science and Technology (4), Dedan Kimathi University of Technology (103), Jaramogi Oginga Odinga University of Science and Technology (100), Garissa University (25), Murang’a University of Technology (17), Kisii University (18), Laikipia University (7) and Maasai Mara University (1).
The Auditor General also flagged 19 universities for violating the National Cohesion and Integration Act, which requires that no more than one-third of staff in any public establishment should come from a single ethnic community.
According to the report, the affected universities recorded dominant ethnic representation levels ranging between 45 and 73 per cent, indicating major shortcomings in upholding diversity, equity and fair representation in public employment.
The report further emphasised the need for public universities to strengthen governance systems, comply with fiscal management laws and ensure equitable staff representation to promote transparency and accountability in the higher education sector.
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