MPs press University of Nairobi for a recovery plan as audit finds it technically insolvent

Get breaking business news on WhatsApp

MPs have given the University of Nairobi (UoN) management a clear demand: show a credible plan to clear about KSh20bn in debt, after the Auditor-General found Kenya’s oldest public university technically insolvent.

Vice-chancellor Prof Ayub Gitau appeared before the National Assembly’s Public Investments Committee on Governance and Education on Thursday, October 22, 2026. The committee, chaired by Luanda MP Dick Maungu, was examining the Auditor-General’s reports on the university for the 2020/21 to 2024/25 financial years.

What the audit found

Auditor-General Nancy Gathungu’s report for the year to June 30, 2022 gave the university a qualified opinion and flagged a material uncertainty over its ability to keep operating as a going concern.

• Annual deficit: about KSh2.1bn, down from KSh3.1bn a year earlier.
• Accumulated deficit: KSh8.81bn, up from KSh6.75bn.
• Working capital: current liabilities of KSh13.79bn against current assets of KSh5.17bn, leaving a gap of KSh8.62bn.
• Unremitted statutory deductions: KSh10.57bn, including KSh5.01bn in taxes owed to the Kenya Revenue Authority and KSh5.53bn in pension contributions.

The unremitted deductions grew by about KSh857m in a single year, and the auditor noted they attract penalties that were not reflected in the accounts. The report concluded that the university “is, therefore, technically insolvent and is unable to meet its financial obligations as and when they fall due”, and that its survival depends on continued support from the government, donors and creditors.

The audit also pointed to loss-making income-generating units, including units under University of Nairobi Enterprises and Services (UNES) and the Faculty of Engineering, whose net position stood at negative KSh781.5m.

Asset base of over KSh220bn

Gitau acknowledged the strain but argued that the university’s property holdings give it room to recover. “We have a debt of about Sh20 billion and an asset base of over Sh220 billion,” he told the committee.

He said management and the university council plan to earn more from those assets by renting out or leasing some properties. A committee chaired by the deputy vice-chancellor in charge of finance is reviewing asset valuations and looking for new revenue. Other measures include growing student enrolment, attracting more research funding and reviving the university’s commercial units.

Deputy vice-chancellor Prof Josiah Aduda confirmed that the university had been declared technically insolvent for the year under review.

MPs want numbers, not intentions

The committee was not satisfied. “What members and I have not seen are pragmatic steps that you have put in place as management to secure the university from this condition,” Maungu said. “We need to see actionable, pragmatic steps to free the university from this yoke.”

Lawmakers asked for a recovery plan backed by verifiable financial projections, clear timelines and measurable targets. They also raised concern about the unpaid pension contributions, which affect former staff who rely on those benefits in retirement.

Why it matters

UoN’s numbers reflect wider pressure on public universities, many of which carry unpaid statutory deductions and supplier bills after years of funding shifts. No change to fees or admissions has been announced. Our guides cover UoN fees, campuses and admission and UoN courses and cut-off points.

For staff, the pension gap is the most pressing issue. Workers who are leaving public institutions can check what they are entitled to in our guide to pension withdrawal rules in Kenya.