MPs give UoN two weeks to explain billions in arrears

The University of Nairobi main campus along Nyerere Road on October 15, 2026. [Jenipher Wachie, Standard]

The University of Nairobi management has been given two weeks to provide documentary evidence explaining billions of shillings in unpaid pension contributions and statutory deductions, as Members of Parliament questioned how the liabilities accumulated and what steps were being taken to resolve them.

The National Assembly Public Investments Committee on Governance and Education, chaired by Luanda MP Dick Maungu, issued the directive during a review of Auditor-General's reports covering the 2020/2021 to 2024/2025 financial years.

The committee questioned Vice-Chancellor Prof. Eng. Ayub Njoroge Gitau and his management team over outstanding pension contributions, unpaid Pay As You Earn (PAYE) taxes, and the institution's proposed recovery measures.

Maungu said the explanations provided by the university were not supported by sufficient documentation, making it difficult for MPs to verify the extent of the liabilities and establish whether the proposed interventions were effective.

“There's nothing to support the good stories,” Maungu told the university officials, demanding evidence of payments made, discussions held with relevant agencies and measures implemented to address the outstanding obligations.

The committee's concerns followed findings by the Office of the Auditor-General indicating that the university failed to remit approximately Sh1.4 billion in pension contributions and Sh50 million in PAYE during the 2021/2022 financial year alone.

MPs also raised concerns about the accumulation of pension and tax arrears over several years, questioning why deductions made from employees' salaries had not been transferred to the relevant institutions.

Lungalunga MP Chiforomodo Mangale sought an explanation for the growing liabilities, questioning how the pension deficit had reached such levels.

“How did it happen that there was an accumulation of up to Sh5 billion?” Mangale asked.

He insisted that the committee would not accept verbal explanations without supporting evidence, saying its responsibility was to establish the circumstances behind the financial difficulties.

“We are not here to sanitise issues. We need to get to the root of what happened,” he said.

Kasipul MP Boyd Were also questioned the management over unpaid PAYE, warning that penalties and interest could further increase the amount owed to the tax authorities.

Central Imenti MP Moses Kirima called for a thorough examination of the university's financial management, drawing comparisons with concerns previously raised over financial irregularities at Moi University.

Responding to the committee, Prof. Gitau said the university had begun paying pension benefits to retiring employees and had resumed remitting pension deductions in recent months.

He acknowledged, however, that the institution continued to face a significant financial deficit and was working with pension scheme trustees to develop a recovery plan.

The vice-chancellor said the pension deficit, which had grown from approximately Sh5 billion to more than Sh10 billion, remained a major challenge.

He added that the university was exploring the possibility of using some of its land and other assets to help address the shortfall.

Prof. Gitau also disclosed that the Government owed the university slightly more than Sh3 billion in outstanding funding and Higher Education Loans Board-related payments. Management said the amount had declined from nearly Sh5 billion but continued to constrain the institution's finances.

DVC Finance Prof. Josiah Aduda told MPs that the university had submitted a remedial payment plan to the Retirement Benefits Authority and was engaging the Kenya Revenue Authority over unpaid taxes.

However, committee members demanded correspondence, payment records and other documents to verify these claims.

The university's acting Director of Finance, Stephen Kimeli, attributed the financial difficulties to several factors, including the cost of collective bargaining agreements, declining student numbers, changes in university funding and the effects of the Covid-19 pandemic.

He said the institution had introduced expenditure-reduction measures targeting personnel costs, post-retirement contracts and staff meal payments.

Kimeli added that the university was pursuing the commercialisation of its assets to generate additional revenue. A valuation of its property had been undertaken, with proposals submitted to the university council for consideration.

Management also cited a staff strike as another factor affecting day-to-day revenue generation.

Maungu directed the university to submit all outstanding documents within two weeks. The committee intends to compare the institution's financial position across the years under review and establish whether the proposed recovery measures are producing tangible results.