University of Nairobi Faces Financial Crisis with Debts Exceeding Ksh.12 Billion

Nairobi, Kenya – The University of Nairobi (UoN) is grappling with a severe financial crisis, with debts surpassing Ksh.12 billion due to inadequate funding from the Ministry of Education. The situation has been further compounded by internal conflicts between the acting vice-chancellor and the university council.

During a visit by the Parliamentary Education Committee on Tuesday, UoN’s management, led by Acting Deputy Vice-Chancellor Margaret Jesang Hutchinson, revealed the extent of the financial turmoil. The university’s outstanding debts include Ksh.7.8 billion in pension arrears and Ksh.4 billion owed to the Kenya Revenue Authority (KRA). Suppliers are also owed Ksh.194 million, while ABSA Bank is yet to receive Ksh.315 million from the institution.

Struggling to Stay Afloat

The university is managing to operate primarily through external support but requires at least Ksh.800 million monthly to cover staff salaries. However, government funding only provides Ksh.100 million per month, exacerbating the financial strain. The situation has led to the dormancy of UoN’s Kisumu and Mombasa campuses, which have suffered from declining student enrollment. Some campus facilities have been rented out to businesses as an alternative revenue source.

“Our payroll is Ksh.800 million monthly, but the government only provides Ksh.100 million. We have no students in Mombasa and Kisumu,” Hutchinson stated.

Leadership Wrangles and Unlawful Appointments

Beyond financial woes, governance issues have deepened the crisis. The acting vice-chancellor has accused the university council of making unilateral decisions, including staff dismissals, without her involvement. One such case is the recent suspension of Prof. Maloba, which even the acting vice-chancellor admitted she had no prior knowledge of.

“Was the decision to suspend lecturers, including the recent suspension of Prof. Maloba, made by the council?” Narok MP Rebecca Tonkei asked during the parliamentary hearing.

“Even I don’t know. I requested clarification from the council, but they haven’t responded yet,” Hutchinson replied.

The committee also learned that between 14 and 20 senior management positions at the university were unlawfully created, with no official documentation to support the appointments. The head of UoN’s legal department, Fredrick Collins Omondi, failed to provide necessary records regarding the academic qualifications of those appointed.

“I can’t respond about their academic documents—they’re not important, and we don’t have them in our records,” Omondi stated, further raising concerns about irregular recruitment practices at the institution.

Parliament Calls for Urgent Action

Members of the Parliamentary Education Committee acknowledged the urgency of the situation, with committee chairperson Julius Meli calling for immediate intervention.

“It’s clear that the university has serious problems, from recruitment to mounting debts. Immediate action is necessary,” Meli said.

The University of Nairobi’s financial and governance crisis poses a significant challenge to Kenya’s higher education sector. With student enrollment dropping and financial obligations mounting, stakeholders are calling for swift reforms to prevent further deterioration of one of the country’s premier institutions.

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University of Nairobi Faces Financial Crisis with Debts Exceeding Ksh.12 Billion