The fight for the control of the University of Nairobi’s vast resources, valued at Sh211.3 billion, is part of the reasons why the institution has recently been embroiled in governance wrangles.
The Nation can reveal that the Ethics and Anti-Corruption Commission (EACC) has trained its lenses on the property and cash flow dealings at the institution — the richest university in Kenya.
Prof Amukowa Anangwe.
Photo credit: File | Nation Media Group
“The EACC is also seized of other investigations, currently at an advanced stage, relating to allegations of embezzlement of public funds and the irregular leasing of various parcels of land by senior officials at the University of Nairobi,” the commission said in a statement.
The agency is investigating how some prime properties found their way into private hands, either through leasing or illegal acquisition.
Auditor-General Nancy Gathungu raised similar questions and also pointed out that there is no evidence of income flowing into the university accounts and who the beneficiaries are.
The Nation understands that the EACC has obtained a list of the university’s properties and is combing through it to filter the truth.
A two-acre plot on Lower Kabete Road (LR NO. 1870/111/71) in the upmarket Spring Valley, which had a staff house, has been leased to Maar Petroleum for 20 years for a monthly rent of Sh700,000.
The lessor demolished the house and put up a petrol station, residential apartments and a chain store building on the land. The Auditor-General noted that the structures have a lifespan of more than 100 years, and queries how they will be treated upon expiry of the lease period.
The construction of the petrol station was subject of a court case in 2023 when members of Kyuna Neighbours Association and Shanzu Road Residents Association sought to stop the building.
The residents said that the approvals for the petrol station were obtained irregularly since the plot lies in Zone Five of the Nairobi County ordinances, which prohibit the development of such a project in the area.
Two directors of the company, Mr Yusuf Abdi Hussein and Mr Omar Ibrahim Abdi, were on November 8, 2023 found to be in contempt of court for disobeying orders stopping the construction.
“No information was provided on how the lessor was identified. No information was provided on whether the land was valued before the lease and whether the university got value for money in terms of the rent amounts in relation to the value of the land,” Ms Gathungu said in her report.
Still in Spring Valley, a portion of LR NO. 7468/9 has been leased to American Tower Corporate which has erected a booster on the land. A search of the company at the Business Registration Service did not yield any results.
According to the audit, a new title deed for the parcel has been created, indicating that it could have been sold off, but no names are mentioned.
The fountain of knowledge at the University of Nairobi.
Photo credit: File | Nation Media Group
“There were no council minutes authorising the intention and justification for the leasing out of the land. Further, the income stream from the rented property could not be identifiable in the university’s income as having been properly recorded,” reads the report.
Another prime piece of land under probe is a plot in Kilimani Estate on Kayahwe Road. Sitting on the one-acre plot is a main house and servant’s quarters.
Ms Gathungu said that it has been leased to an unknown person who, in turn, sub-let it to Al’s Pride Car Dealers.
“One side of the land is fenced off in a manner that suggests that it has been hived off from the main parcel. Further, the lease agreement was not provided for audit and the lease is not registered on the title. In addition, there was no flow of income from this property to the university,” she noted.
Also under investigation is the ownership of a house in Hurlingham that previously functioned as council offices. The house has since been rented out and the council offices moved to another university property on Ngong Road, near Adams Arcade (LR 2/21). It has two staff houses.
While one of the houses was turned into the new council offices, the other one “has been fenced off in a manner that suggests that it could be detached and sold off”.
Other properties under investigation are; 10 acres in Kanyariri Farm in Kiambu County, 40 acres behind ANP Hostels in Loresho, 100 acres in Kibwezi Field Station, 20 acres leased to Shamba Cafe Hotel in Loresho Ridge, Nairobi and six acres next to Dusit Hotel, Riverside Drive also in the city.
“Further, the Auditor-General has noted massive irregularities in the administration of funds for the proposed construction of the University of Nairobi, Engineering and Science Complex. Notably, close to Sh100 million has been spent mainly on payment of allowances and a feasibility study with nothing else to show on the ground,” Universities Academic Staff Union (Uasu) chapter secretary Dr Maloba Wekesa said.
A case filed by council chair Prof Anangwe opposing his removal from the position indicates the deep-seated tensions in the leadership of the university.
Education Cabinet Secretary Julius Ogamba.
Photo credit: Kevin Odit| Nation Media Group
“The petitioner has on several occasions ejected the representative of the Principal Secretary from meetings and on several occasions proceeded without representation from the Ministry [of Education,” reads a replying affidavit, sworn by the Principal Secretary for Higher Education Beatrice Inyangala.
She has attached a letter dated August 28, 2024 by the Director of Higher Education, Darius Mogaka Ogutu, in which he narrates how Prof Amukowa threw him out of a council meeting and called the security to escort him out of the university.
“I am, as the Director, Higher Education and PS representative, not privy to the discussions and resolutions thereof. Later, it came out that it is in the said meeting where the ministry was not represented that the council resolved to suspend the Vice Chancellor [Prof Stephen Kiama],” reads the letter by Mr Ogutu to Dr Inyangala.
EACC is also investigating expenses by the council that have been flagged by the Auditor-General for the year ended June 20 2024. The council expenses total Sh29.6 million. Of this, the council members earned sitting allowances totalling Sh8.7 million and spent Sh17.5 million on travel and accommodation.
However, the report questions the composition of the sub-committees of the council as well as the number of meetings held since the allowances paid exceed the number of meetings where minutes and attendance registers were provided for audit.
