Five Kenyan public universities fined Sh411 million over unclaimed financial assets
The compliance audit, which sampled eight universities, found that the institutions held unclaimed financial assets in the form of caution money and overpaid fees.
Five public universities in Kenya have been slapped with hefty fines for failing to remit unclaimed financial assets amounting to Sh2.6 billion to the Unclaimed Financial Authority (UFA), a new audit report has revealed.
The compliance audit, which sampled eight universities, found that the institutions held unclaimed financial assets in the form of caution money and overpaid fees. However, out of the eight universities, five had not located or notified students entitled to refunds.
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The five universities have now been fined a total of Sh411.7 million for failing to submit the unclaimed assets to UFA. The audit shows that in some cases, penalties imposed on the institutions exceeded the value of the unclaimed assets.
“Review of compliance audit reports revealed that public universities held unclaimed financial assets worth Sh2.6 billion, which were due for remittance to the Unclaimed Financial Authority,” Auditor General Nancy Gathungu said in her performance audit report on the management of unclaimed financial assets.
She further noted that the heavy penalties led to delays in closing the identified assets, with some universities neither surrendering the funds to the Authority nor proving that they did not qualify as unclaimed.
“This occasioned the non-recovery of the identified assets,” reads the report.
The University of Nairobi holds the largest share of unclaimed financial assets at Sh2.3 billion and has been fined Sh66.9 million. Maseno University has Sh40.6 million in unclaimed assets and was fined Sh74.6 million, 183.4 per cent more than the principal amount. Egerton University was found with Sh30.3 million and fined Sh39.1 million, representing 129.1 per cent of the principal value. Moi University holds Sh171.4 million and was fined Sh211.4 million, which is 123.3 per cent higher, while Kenyatta University has unclaimed assets worth Sh20.8 million and was fined Sh19.8 million.
Gathungu observed that the sampled universities did not proactively reunify unclaimed funds with their rightful owners. Instead, some institutions used refundable deposits to sustain operational activities due to financial constraints.
The report noted that this practice led to the accumulation of refundable deposits that had not been forwarded to UFA as required.
Universities are expected to remit caution money and overpaid fees that remain unclaimed for more than two years after students graduate or complete clearance.
The release of the audit coincided with ongoing industrial unrest in public universities, which the government has distanced itself from. Education Cabinet Secretary Julius Ogamba told Parliament that the strike by university lecturers is unprotected, citing a court ruling.
“Regarding the 2021-2025 CBAs, we wish to indicate that the requirements thereunder have been substantially settled. Indeed, the industrial action by UASU and KUSU was interdicted by the Employment and Labour Relations Court on 18th September, 2025, and the parties were directed to submit to conciliation. The strike is therefore unprotected,” he said.
Ogamba said the Employment and Labour Relations Court had declared the strike unprotected after hearing both sides of the dispute. Members of the Universities Academic Staff Union (UASU), Kenya Universities Staff Union (KUSU), and the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) have been on strike for the fourth week, accusing the government of failing to honour their Collective Bargaining Agreements (CBAs).
The unions have demanded the full implementation of the 2017–2021 CBAs, settlement of arrears under the 2021–2025 agreements, and the commencement of negotiations for the 2025–2029 CBA.
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