The University of Nairobi (UoN) is grappling with a severe financial crisis, prompting the institution to lease out some of its buildings. The university is struggling under a debt burden exceeding Ksh12 billion and is facing inadequate funding from the Ministry of Education.
A visit by the Parliamentary Education Committee, led by Chairperson Julius Melly, sought to assess the university’s financial and managerial challenges.
Acting Vice-Chancellor Margaret Jessang Hutchinson shed light on the university’s financial struggles, attributing much of its troubles to significant debts. Among them, pension arrears amount to Ksh7.8 billion, while Ksh4 billion is owed to the Kenya Revenue Authority (KRA).
“You will realize that the highest component that we have is the one for pensions at Ksh7.782 billion. The others are smaller amounts, nonetheless very, very important, like the supplies of goods and services at 194,” Hutchinson explained.
The institution heavily relies on external support to keep operations running and requires Ksh800 million every month to pay its staff.
Campuses Leased Out Amid Declining Enrolment
Due to dwindling student enrolment, the university’s Kisumu and Mombasa campuses remain underutilized. As a result, some sections of the university have been rented out for commercial use to generate revenue.
“We have programs running, but they are not fully utilized. If you go to Kisumu, it’s a beautiful place. In Mombasa, we have the Uni Plaza, which we are leasing out,” Hutchinson revealed.
She further noted that UoN only receives Ksh123 million in funding from the government, which is far below what is required to sustain the institution.
Management Disputes and Staff Suspensions
Hutchinson disclosed that key decisions, including staff dismissals, have been made by the University Council without her involvement. She cited the suspension of Dr. Wekesa Maloba as an example, stating that she was yet to receive official minutes of the meeting that led to the decision.
“I’m on record requesting side minutes from the Chair, but I have not received them to date,” she stated.
Further revelations indicated that between 14 and 20 senior management positions had been created without proper approval, raising accountability concerns. The university’s legal department is now under scrutiny for failing to provide documentation for these appointments.
Melly criticized the management for disregarding recruitment procedures, stating, “You have flouted the rules on recruitment and the constitution of management. Individuals are drawing money without accountability. The rule of law must be upheld.”
With financial troubles deepening and governance concerns emerging, the University of Nairobi faces an uncertain future as it seeks solutions to its ongoing crisis.