Audit shows Sh14 billion lost in Kenyan public universities through corruption
By Maureen Kinyanjui |
Report highlights weaknesses in financial oversight and governance, including irregular payments, unsupported expenditures, dubious contracts, and breaches of procurement rules.
An audit report by Auditor-General Nancy Gathungu has exposed deep-seated financial mismanagement, corruption, and waste in public universities across Kenya, leading to an estimated loss of over Sh14 billion in the year ending June 2022.
The report highlights weaknesses in financial oversight and governance, including irregular payments, unsupported expenditures, dubious contracts, and breaches of procurement rules.
"Failure by the entities to fully support payments casts doubt on the authenticity of the reported expenditures," Gathungu stated.
Maasai Mara University in Narok County was singled out for financial irregularities amounting to over Sh3 billion.
Discrepancies included Sh287 million unaccounted for between financial statements and bank accounts, Sh113 million in unsupported expenses, and lavish spending such as Sh6 million on foreign trips for university council members to Dubai and Zanzibar.
"Evidence of travel, by way of invitation letters, copies of air tickets, boarding passes, and other details, were not provided for audit," reads the report.
Moi University also failed to account for Sh1.6 billion, including Sh34.4 million paid in legal fees to unnamed lawyers and Sh46.8 million for field courses.
No proper documentation
Gathungu noted these expenditures were not supported by proper travel documentation.
Additionally, Sh262.1 million paid to casual workers lacked budgeting and supporting records, raising concerns of possible embezzlement.
Egerton University in Nakuru County was found to have an unauthorised bank overdraft exceeding Sh239 million.
The institution also failed to remit workers’ salary deductions totalling Sh6 million, a situation that contributed to financial strain and recurrent employee strikes.
Other universities flagged include the Technical University of Kenya which was flagged for questionable spending amounting to Sh1 billion, while the University of Kabianga was found to have unaccounted expenditures totalling Sh877 million.
Kenyatta University was highlighted for irregular expenditures of Sh835 million, including Sh430 million spent on its now-closed Kigali campus.
Jomo Kenyatta University of Agriculture and Technology (JKUAT) lost Sh3.3 million on an undelivered dental chair and made irregular payments in acting and special duty allowances.
The audit revealed that nine universities collectively disbursed Sh559 million in irregular allowances, overpayments, penalties, and avoidable legal costs.
Gathungu stressed the need for stronger internal controls and financial accountability to prevent further losses.
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