PIC probes Sh844 M JOOUST hostel project

National Assembly's PIC on Governance and Education chair Dick Maungu on July 8, 2026. [Elvis Ogina, Standard]

The construction of a 1,000-bed students' hostel at Jaramogi Oginga Odinga University of Science and Technology (JOOUST) has raised concerns following audit concerns over contract variations.

The National Assembly's Public Investments Committee (PIC) on Governance and Education has launched fresh investigations into payments totaling Sh844 million and an ongoing court dispute involving the contractor.

The committee, chaired by Luanda MP Dick Maungu, resolved to summon former Vice-Chancellor Prof. Stephen Gaya Agong, project consultants and auditors to explain the circumstances surrounding the project's rising costs and whether procurement laws were followed.

The hostel project was awarded to Sasah General Merchants in February 2010 at a contract price of Sh663.9 million and was expected to be completed within three years.

However, certified payments eventually rose to Sh844.1 million, prompting questions from lawmakers over the additional expenditure.

According to the Auditor-General's reports for the 2023/24 and 2024/25 financial years, the university failed to provide documents supporting contract variations worth Sh180.1 million.

Auditors also noted that completion and handover certificates were unavailable despite students already occupying the hostel.

The committee further established that the contractor has sued the university in Civil Case No. E002 of 2023 over alleged unpaid dues, raising concerns that taxpayers could incur additional costs through legal fees and penalties.

Representing the Office of the Auditor-General's Kisumu Regional Office, CPA Kennedy Ongoi warned that unresolved disputes could expose public resources to avoidable losses.

"Where a contractor takes a public institution to court demanding payment, the institution risks paying legal fees and penalties. These are avoidable expenses if projects are managed prudently," Ongoi said.

Appearing before the committee, Prof. Agong, who served as vice-chancellor until June 19, 2023, maintained that the university had paid "close to Sh600 million" during his tenure and insisted the final payment certificate reflected only Sh4.8 million.

However, Maungu challenged the explanation, noting that Certificate Number Five, prepared on June 9, 2023—10 days before Prof. Agong left office—showed cumulative certified payments of approximately Sh844 million.

"You exited the university on June 19, 2023, and before you left, Certificate Number Five had already been prepared showing Sh844 million. Meaning all this happened within your tenure," Maungu said.

Committee documents revealed several contract variations, including additional payments of Sh19.8 million, Sh38.1 million, Sh44.1 million, Sh528,000 and Sh79.6 million classified as "fluctuations." Lawmakers questioned whether the payments complied with the Public Procurement and Asset Disposal Act.

Prof. Agong denied approving the disputed Sh79.6 million, arguing that some  expenditure related to maintenance works undertaken after students occupied the hostel, including repairs following a fire incident.

He also defended retaining the original contractor for maintenance, saying bringing in another contractor while the facility was occupied would have been impractical.

MPs called for another hearing involving the former and current vice-chancellors, the contractor and auditors. Current Vice-Chancellor Prof. Emily Akuno urged the committee to help resolve the long-running dispute, while Maungu directed that all project records be produced before the next hearing to establish accountability and recover any public funds found to have been lost.