The University of Nairobi (UoN) management has until December 1, to explain how it plans to clear its Ksh20 billion debt after MPs questioned its financial recovery strategy.
The National Assembly Public Investments Committee on Governance and Education, chaired by Luanda MP Dick Maungu, grilled Vice-Chancellor Professor Ayub Gitau and Deputy Vice-Chancellor Professor Josiah Aduda over the university’s financial crisis on Thursday, October 22.
“Maungu directed the university to submit a report on the proposed interventions by December 1, 2026. The chairman said the committee would continue examining the Auditor-General's reports for the remaining financial years and would make recommendations after considering the issues raised,” the Committee stated.
The lawmakers expressed concern about accumulated deficits, unpaid statutory deductions, pension arrears and losses from some income-generating units, demanding concrete measures to restore the institution’s financial stability.
The University of Natobi VC and DVC (left) before the National Assembly Public Investments Committee on Governance and Education on Thursday, October 22.
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National Assembly
The committee based its decision on the Auditor-General Nancy Gathungu's report, which outlines that UoN had recorded a Ksh2.2 billion deficit, pushing its accumulated deficit to Ksh8.8 billion, while taxes and pension obligations stood at Ksh10.6 billion.
The university’s management acknowledged the financial difficulties but pointed to its asset portfolio, valued at more than Ksh220 billion, as a potential source of revenue through property leasing and commercialisation.
However, MPs challenged the leadership to provide verifiable figures demonstrating how its proposed austerity measures, improved revenue collection and expenditure controls would help settle outstanding obligations.
Deputy VC Aduda acknowledged that the university had been declared technically insolvent during the audited period, while the committee demanded a clear implementation schedule for its proposed recovery measures.
This comes as public universities across the country are facing mounting financial pressure, with total debts and pending bills across the sector exceeding Ksh100 billion in 2026, threatening operations and payments to creditors.
Egerton University reportedly leads public institutions with Ksh25.5 billion in outstanding obligations, followed by Kenyatta University at Ksh12.8 billion and Moi University at approximately Ksh10.4 billion.
The wider higher education sector faces liabilities exceeding Ksh205 billion, including university debts and Higher Education Loans Board (HELB) funding shortfalls, with reduced government funding and rising payroll costs worsening the situation.
Meanwhile, President William Ruto pledged to clear public universities’ accumulated debts within two to three years, following earlier commitments to address pending bills through higher education financing reforms.
His administration has pursued changes to student funding, proposed tax penalty waivers and encouraged universities to commercialise assets, expand research activities and diversify revenue sources to improve financial sustainability.
The University of Nairobi Vice Chancellor, Ayub Njoroge Gitau.
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The University of Nairobi