An audit of the University of Nairobi’s 2021/2022 accounts found that the institution failed to remit about Sh1.4 billion in pension contributions and Sh50 million in PAYE taxes, prompting the Public Investments Committee to set a two‑week deadline for a detailed explanation.

Vice‑Chancellor Prof Eng Ayub Njoroge Gitau and senior managers appeared before the committee, chaired by Luanda MP Dick Maungu, and were questioned on how the debts arose and what steps are being taken to settle them.

MPs including Kasipul Boyd Were and Lungalunga Chiforomodo Mangale pressed the university for evidence that salary deductions had been transferred to the pension scheme and the Kenya Revenue Authority, warning that penalties could increase the outstanding amounts.

Gitau said pension benefits to retiring staff have recently resumed and that the university is negotiating a recovery plan with pension trustees, while also considering the sale of land and other assets to address a pension deficit that has risen from about Sh5 billion to over Sh10 billion.

He disclosed that the government owes the university just over Sh3 billion in pending Higher Education Loans Board funding, a figure that has fallen from nearly Sh5 billion but still represents a significant burden.

Deputy Vice‑Chancellor for Finance Prof Josiah Omollo Aduda said a remedial payment plan has been submitted to the Retirement Benefits Authority and that discussions with the Kenya Revenue Authority are ongoing to settle the unpaid taxes.

Acting Director of Finance Stephen Kimeli attributed the fiscal strain to collective‑bargaining costs, reduced student enrolment, changes in funding formulas and the lingering impact of the Covid‑19 pandemic, noting that the university has introduced spending cuts and is exploring commercialisation of its assets.

Maungu concluded the hearing by ordering the university to provide the requested correspondence, payment records and other supporting documents within two weeks, so the committee can compare the institution’s financial position over the audited years and verify the effectiveness of any remedial measures.