UoN Given Two Weeks to Explain Ksh10.6 Billion in Unpaid Pensions, Taxes

The University of Nairobi (UoN) has been ordered to submit documents accounting for billions of shillings in outstanding pension contributions and unpaid taxes.

The National Assembly Public Investments Committee on Governance and Education Chairperson, Luanda MP Dick Maungu, issued the directive on Wednesday, October 28, during a review of Auditor-General's reports covering the 2020/2021 to 2024/2025 financial years.

Join our WhatsApp Channel for the latest news updates.

Vice-Chancellor Prof. Eng. Ayub Njoroge Gitau and other university officials appeared before the committee to respond to questions about unpaid pension deductions, Pay As You Earn (PAYE) taxes and measures proposed to address the institution's mounting financial obligations.

The MPs expressed dissatisfaction with the explanations provided by the university management, arguing that the claims needed to be supported by verifiable records before the committee could establish the extent of the liabilities and evaluate the proposed recovery measures.

Maungu challenged the officials to provide evidence of the steps taken to resolve the outstanding payments, saying verbal assurances were insufficient to satisfy the committee's concerns.

"There's nothing to support the good stories," Maungu told the university officials, insisting that the management provide documents demonstrating what had been done to address the outstanding obligations.

The scrutiny followed findings by the Office of the Auditor-General showing that the university failed to remit approximately Ksh.4 billion in pension contributions and Ksh50 million in PAYE taxes during the 2021/2022 financial year alone.

The committee also examined the accumulated arrears from previous financial years, with legislators questioning why deductions made from employees' salaries had not been transferred to the relevant pension schemes and tax authorities.

Kasipul MP Boyd Were raised concerns over the unpaid PAYE obligations, warning that penalties and interest could push the outstanding tax bill even higher if the university failed to settle the amounts due.

Lungalunga MP Chiforomodo Mangale pressed the management to explain how the institution's pension and tax liabilities had grown to such significant levels, demanding accountability for the accumulation of the debts.

"How did it happen that there was an accumulation of up to Ksh5 billion?" asked Lungalunga MP Chiforomodo Mangale, who demanded an explanation for the accumulation of pension and tax liabilities.

Mangale warned that the committee would not accept unsupported explanations and said its priority was to establish the circumstances that led to the financial difficulties.

"We are not here to sanitise issues. We need to get to the root of what happened," Mangale said.

Central Imenti MP Moses Kirima called for a comprehensive investigation into the university's financial position, comparing the concerns with previous questions raised over financial irregularities at Moi University.

Kirima urged the committee to establish the causes of the accumulated debts and determine whether failures in financial controls and management contributed to the situation.

Responding to the concerns, Prof. Gitau said the university had begun paying retiring employees their pension benefits and had resumed remitting pension deductions in recent months.

However, he acknowledged that the institution still faced a substantial pension deficit and was working with trustees of the relevant pension schemes to develop a plan for addressing the arrears.

The vice-chancellor also disclosed that the university was considering commercialising some of its land and other assets to raise funds for settling the pension obligations. He said the deficit had increased from approximately Ksh5 billion to more than Ksh10 billion.

Gitau further revealed that the Government owed the institution slightly more than Ksh3 billion in outstanding funding and payments associated with the Higher Education Loans Board.

According to the university management, the pending government payments had declined from nearly Ksh5 billion to just over Ksh3 billion, although the remaining amount continued to strain the institution's finances.

Deputy Vice-Chancellor in charge of Finance, Planning and Development Prof. Josiah Omollo Aduda told the committee that the university had submitted a remedial payment plan to the Retirement Benefits Authority as part of efforts to address the pension arrears.

Aduda said the institution was also engaging the Kenya Revenue Authority over the outstanding taxes and had held discussions with the relevant agencies to find a way of meeting its statutory obligations.

This comes days after Kenyatta University has distanced itself from an internal memo purporting to announce the resumption of classes amid the ongoing nationwide lecturers' strike.

In a clarification issued on Friday, October 23, the University's management flagged the memo as fake and asked students to disregard it.

"All Kenyatta University students are advised to disregard the internal memo circulating on social media regarding the resumption of classes on Monday, 26th October 2026.

"The document is fake and did not originate from the Office of the Registrar (Academic) or any official university authority," the statement read.

Kenyatta University told its students that they should verify any information on the institution's official channels.