Public universities burdened with Sh5.53 billion in penalties, fines - report
By Lucy Mumbi |
The liabilities stem from contract breaches, wrongful dismissals, and other legal disputes, exacerbating the ongoing cash crisis in the sector.
A report by the State Department for Higher Education and Research has revealed that public universities in Kenya are facing financial challenges arising from penalties and fines totalling Sh5.53 billion.
According to the report, the liabilities stem from contract breaches, wrongful dismissals, and other legal disputes, exacerbating the ongoing cash crisis in the sector.
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As of June 2024, the report notes that only 10 out of 79 public universities had disclosed data on their legal liabilities.
These universities have paid only 11.08 per cent of the penalties, amounting to Sh612 million, leaving taxpayers with a significant burden.
"The fines result from unresolved cases, including non-payment of suppliers, unlawful termination of employees, and breaches of contractual agreements," reads the report.
The University of Nairobi (UoN) and Moi University collectively account for more than three-quarters of the disclosed liabilities, according to expenditure proposals submitted to the Treasury ahead of budgetary allocations for the next financial year.
The UoN alone faces fines amounting to Sh2.66 billion, representing 48.18 per cent of the total penalties disclosed.
The largest single case involves a Sh1.49 billion fine in a land ownership dispute over a property in Nairobi’s Upper Hill. The court awarded the land to a private entity after a contest between the university and another public institution.
Contractual dispute
Moi University, facing financial challenges, owes Sh1.24 billion due to a long-running contractual dispute over the construction of a science faculty building at its main campus, dating back to 1990.
The university management halted the project, citing alleged cost inflation and financial constraints, and ordered the contractor off-site in 1999. In February 2024, the court directed the university to pay Sh185 million plus accrued interest calculated at prevailing bank rates until the debt is fully settled.
Other institutions facing substantial liabilities include Kisii University, which disclosed Sh631 million in penalties and has paid Sh175.51 million.
Egerton University has settled Sh170.48 million out of Sh225.61 million owed, while the Technical University of Kenya has paid Sh9.15 million of a Sh25.22 million fine.
Maasai Mara University has cleared Sh13.53 million out of Sh16.42 million owed, and Laikipia University, Turkana University, and Bomet University owe Sh45.37 million, Sh21.41 million, and Sh4.86 million respectively.
Despite repeated warnings from the Attorney-General’s office, including threats of sanctions against accounting officers, the trend of legal breaches by university management persists.
The growing liability has raised concerns about governance and financial accountability within public universities.
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