An audit has revealed how various public universities may have blown billions of shillings through irregular allowances, overpayments and other needless expenditures that remain unexplained.
The latest report by Auditor-General Nancy Gathungu exposes deep-rooted financial mismanagement in public universities, potentially resulting in the loss of more than Sh3 billion in taxpayer funds.
According to the audit, numerous universities failed to properly account for large sums of money spent highlighting catastrophic financial lapses in institutions of higher learning at a time when the sector has faced a worsening financial crisis for more than five years.
Ten public universities including Kenyatta University, Moi University, the University of Nairobi, the University of Kabianga, Egerton University, Jaramogi Oginga Odinga University of Science and Technology, Murang’a University of Technology, Maasai Mara University, the Technical University of Kenya and the Technical University of Mombasa spent a total of Sh2.8 billion but did not provide documents to support the expenditure.
The entrance to Kenyatta University in this picture taken on April 5, 2025.
Photo credit: Wilfred Nyangaresi | Nation Media Group
For instance, during the year under review, Nakuru-based Egerton University paid Sh6.3 million in rent to two landlords without a valid contract.
Murang’a University of Technology spent Sh786,060 on air transport and mileage allowances for university council members but failed to provide supporting documents.
The University of Nairobi, on the other hand, spent Sh1.78 billion on accommodation and catering fees as well as payments to casual employees, without providing documentation to justify the expenditure.
“The university did not support expenditure of Sh133.9 million on accommodation and catering fees, Sh662,662 spent by the council, and Sh1.64 billion paid to casual employees,” reads part of the report covering the year ending 2024.
During the same period, the University of Kabianga in Kericho spent Sh22.5 million leasing land from Telkom Kenya Limited. However, the audit found there were no valid lease agreements as required by law.
At the same time, Jaramogi Oginga Odinga University of Science and Technology spent Sh18 million on payments to casual employees yet there was no documentary evidence showing how they were identified or recruited. The university also recorded unsupported expenditure of Sh278 million.
Ms Gathungu also put the Technical University of Kenya on the spot over Sh8.7 million spent by the university council during special meetings.
A review of attendance registers revealed that the council held 14 special meetings but provided minutes for only four, raising concerns over the authenticity of the remaining ten meetings.
The audit further found that 14 public universities jointly spent Sh268.99 million on irregular payments, allowances, mileage reimbursements and other unnecessary expenditures.
“Review of the universities’ financial records revealed that 14 public universities made irregular payments totalling Sh268,997,707 on activities such as excessive mileage reimbursements, unsupported legal and security payments, direct allowances to police officers, and irregular acting and responsibility allowances,” the report states.
For example, Kenyatta University made irregular mileage reimbursements totalling Sh13.6 million, while Egerton University made irregular payments of Sh12.2 million to police officers and lawyers.
Narok-based Maasai Mara University paid staff irregular acting allowances and other payments amounting to Sh26.2 million.
South Eastern Kenya University was also cited for irregularly procuring and paying for fuel worth Sh12.3 million without a contract or framework agreement.
Multi-Media University was flagged over irregular expenditure in the procurement of legal services, security guards and cleaning services.
At the University of Nairobi, Sh13.9 million was illegally paid as acting allowances and legal service fees.
Egerton University Njoro Campus main gate.
Photo credit: Francis Mureithi | Nation Media Group
Koitalel Samoei University College spent Sh3.8 million on irregular procurement of air ticketing services, acting allowances, board retreats and unapproved council sitting allowances.
At Turkana University College, ten non-teaching staff members were paid Sh1.42 million as part-time lecturers despite being engaged in day duties.
Other institutions cited include Alupe University College, which irregularly paid Sh609,481 into the Vice-Chancellor’s committee kitty, Garissa University, where two staff were overpaid allowances and salary totalling Sh9.1 million ad Machakos University, which made illegal payments of acting allowances and to police officers deployed at the institution
Taita Taveta University, Jomo Kenyatta University of Agriculture and Technology (JKUAT) and the University of Kabianga also made irregular payments amounting to Sh144 million during the year under review.
Ms Gathungu criticised the expenditures, describing them as “a wasteful charge to public funds,” and highlighting the lack of sufficient documentation supporting the payments.
“Failure by the entities to fully support payments casts doubt on the authenticity of the reported expenditure,” she wrote.
According to the Auditor-General, the unsubstantiated expenditures point to weak internal controls and poor governance within the institutions.
She urged universities to strengthen internal controls, automate financial systems, and ensure compliance with laws, regulations and internal policies.
The report also revealed vulnerabilities in cash and imprest management, disorganised payrolls, lax store controls and weak fee policies.
Other issues included questionable supplier contracts, procurement beyond approved budgets, and poor financial oversight.
“Review of public universities’ procurement records revealed that ten public universities had procurement irregularities amounting to Sh1.34 billion. These included lack of approved procurement plans, failure to use the e-procurement system, awarding contracts to non-prequalified suppliers, and contracts awarded without supporting documents,” Ms Gathungu noted.
The audit showed that the University of Nairobi recorded procurement irregularities amounting to Sh727.3 million, followed by the University of Kabianga at Sh355.3 million and Kenyatta University at Sh53.1 million.
