The recent Auditor General’s report on Kenya’s public universities has uncovered disturbing financial mismanagement, revealing over KSh 14 billion in unaccounted funds.
The audit paints a grim picture of systemic failures in financial oversight, misuse of resources, and weak internal controls, underscoring the need for urgent reforms.
The report highlights several key findings, all pointing to severe mismanagement across multiple universities.
One of the most glaring issues identified was the occurrence of irregular payments.
At Maasai Mara University, for instance, over KSh 641 million paid to suppliers could not be substantiated, raising serious concerns about the transparency and legitimacy of the transactions.
In addition to this, discrepancies in financial statements were found, further compounding the issue.
This lack of accountability is alarming, especially considering the magnitude of taxpayer money at stake.
Another critical area of concern is the management of staff payrolls, with numerous instances of ghost workers and payroll anomalies.
Garissa University, for example, was flagged for irregularities involving employees sharing bank accounts yet possessing different payroll numbers.
Such discrepancies are indicative of deeper systemic flaws, suggesting the possibility of fraud or mismanagement, which could easily go unnoticed without proper oversight.
These payroll irregularities have serious implications, not only for the institutions involved but also for the broader public sector’s credibility.Procurement irregularities were widespread, with institutions making payments for undelivered goods and services.
Jomo Kenyatta University of Agriculture and Technology (JKUAT) was cited for paying millions for equipment that was never delivered, pointing to inefficiencies and corruption within the procurement process.
The Technical University of Kenya faced investigation for dubious staff training expenses.
These examples illustrate the lack of effective financial controls, which have allowed public funds to be misused.
The report also highlights issues related to tuition fee balances, with some universities failing to account for this amounts in student fees.
There were also questionable payments to contractors, further compounding the financial mismanagement that has plagued these institutions.
These deficiencies not only jeopardize the institutions’ financial health but also compromise their ability to provide quality education and services to students.
One of the most concerning aspects of the findings is the weak governance and accountability frameworks in place at these universities.
Internal controls, such as the management of imprests (advance payments for business expenses) and fee collections, were poorly enforced.
The absence of robust risk management systems allowed for these irregularities to persist without detection for extended periods.
This has led to a loss of public trust in these institutions, which are supposed to be models of academic and financial integrity.
The Auditor General’s report calls for stringent actions, including the prosecution of responsible officials and the implementation of reforms to strengthen financial management practices across the board.