The Office of the Auditor‑General (OAG) has declared the University of Nairobi technically insolvent, reporting a negative working capital of KSh 8.62 billion and a total debt burden of roughly KSh 20 billion.

Current liabilities stand at KSh 13.79 billion against current assets of KSh 5.17 billion, confirming the negative working capital figure.

The OAG’s audit of the 2021/2022 financial year also revealed an accumulated deficit of KSh 8.8 billion, with a specific deficit of KSh 2.2 billion for that year.

Unremitted statutory deductions, including tax and pension obligations, total KSh 10.57 billion, adding to the university’s cash‑flow pressures.

Vice‑Chancellor Professor Ayub Gitau, who assumed office in 2026, defended the institution before the National Assembly Education Committee, noting an asset base exceeding KSh 220 billion and outlining revenue‑generation plans such as property leasing and expanding enrolment.

Committee chair Maungu questioned how an institution declared insolvent could meet obligations to staff, suppliers and other stakeholders, while lawmakers called for a recovery plan with verifiable projections and timelines.

The OAG concluded that the university’s continued operation depends on support from the government, donors and creditors, reflecting a broader crisis in Kenya’s public university system.

A separate OAG assessment found that 21 public universities collectively held a negative working capital of about KSh 42.55 billion in the 2023/2024 fiscal year, and Education Cabinet Secretary Julius Ogamba has earlier warned that 23 of 35 public universities are effectively insolvent with a combined unpaid statutory bill of KSh 75 billion.

The Education Committee is set to continue scrutinising university administrators and government officials as the Ministry of Education works on a new funding framework to address systemic shortfalls.