University of Nairobi in financial crisis with debts exceeding Ksh.12 billion

The University of Nairobi’s management has acknowledged that the institution is facing a financial crisis, with debts exceeding Ksh.12 billion due to insufficient funding from the Ministry of Education.

A growing rift between the acting vice chancellor and the university council has worsened the situation. The vice chancellor claims the council has been making key decisions, including staff dismissals, without his input. 

The Parliamentary Education Committee on Tuesday visited the university to uncover the reasons behind its financial and managerial problems.

University management, led by Acting Deputy Vice-Chancellor Margaret Jesang Hutchinson, opened up about the causes of the institution’s troubles. Debts of over Ksh.12 billion top the list, including pension arrears of Ksh.7.8 billion and Ksh.4 billion owed to the Kenya Revenue Authority (KRA).

"We owe suppliers Ksh.194 million, ABSA Bank Ksh.315 million, and other debts continue to pile up," said Acting Deputy Vice-Chancellor Margaret Jesang Hutchinson.

The university is only managing to stay afloat with external support and needs Ksh.800 million every month to pay its staff. At the same time, Kisumu and Mombasa campuses remain dormant due to a significant decline in student enrollment. Some parts of the campuses have been rented out to businesses.

"Our payroll is Ksh.800 million monthly, but the government only provides Ksh.100 million. We have no students in Mombasa and Kisumu," said Acting Deputy Vice-Chancellor Margaret Jesang Hutchinson:

Members of Parliament were informed that the acting vice-chancellor has remained in the dark about several key decisions made by the university council, which she leads, including staff dismissals—such as the suspension of lecturers—without her knowledge.

"Was the decision to suspend lecturers, including the recent suspension of Prof. Maloba, made by the council?" posed Narok MP Rebecca Tonkei.

Acting Deputy Vice-Chancellor Margaret Jesang Hutchinson: "Even I don’t know. I requested clarification from the council, but they haven’t responded yet."

The university’s management also revealed that between 14 and 20 senior management positions were created unlawfully, and the university lacks essential documents for those appointed to these positions. The head of the university's legal department is now facing scrutiny for failing to provide these important records.

“I can’t respond about their academic documents—they’re not important, and we don’t have them in our records," said UoN lawyer Fredrick Collins Omondi.

The parliamentary committee acknowledged that the university is in crisis, with chairperson Julius Meli stating: "It’s clear that the university has serious problems, from recruitment to mounting debts. Immediate action is necessary."