UoN acting VC hit with Sh500,000 fine as EACC launches land inquiry

The University of Nairobi’s (UoN) acting Vice Chancellor, Margaret Jesang’ Hutchinson, has been fined Sh500,000 by the Public Investments Committee on Governance and Education.

This is over her failure to adequately respond to audit queries, even as the institution faces a deeper probe into the alleged irregular use of public resources.

The fine was imposed by the committee chairperson and Bumula MP Wanami Wamboka, who ruled that Hutchinson must pay the amount from her own funds within two weeks.

"I want to invoke the Standing Orders and fine you Sh500,000, payable in two weeks time. The cheque should be addressed to the Clerk of the National Assembly, money which should not come from the institution but from your own pocket," Wamboka directed.

This development came as the Ethics and Anti-Corruption Commission (EACC) confirmed that it is investigating the university over unlawful leasing of several land parcels, sparking fresh concerns about governance and accountability at the public institution.

The land under scrutiny includes 10 acres at Kanyariri farm, 40 acres behind the ANP hostels, 100 acres in the Kibwezi field station, 20 acres leased to Shamba Cafe Hotel, six acres next to Dusit Hotel in Spring Valley, and residential houses along Ngong Road and Arboretum Drive.

While appearing before the committee, Hutchinson acknowledged receiving a letter from the EACC requesting documentation related to the leases.

"Yes, I can confirm that the letter was addressed to the acting Vice-Chancellor, which we responded to on Monday," she said.

The financial woes facing the institution run deeper than land issues.

The university is grappling with a ballooning debt of over Sh12 billion, a burden worsened by what management says is insufficient funding from the Ministry of Education.

The debts include Sh7.8 billion in pension arrears, Sh4 billion owed to the Kenya Revenue Authority (KRA), Sh194 million to suppliers, and Sh315 million to Absa Bank.

Additionally, the university management admitted that between 14 and 20 senior management positions were created unlawfully.

The individuals appointed to these roles reportedly lack the required documentation to validate their appointments.

On the same day, the committee also fined University of Embu Vice-Chancellor Prof Daniel Njiru Sh3.8 million for misusing funds meant for implementing the Collective Bargain Agreement (CBA).

The committee found that Prof Njiru authorised the diversion of the funds without the university council’s approval, a breach of financial regulations.

"It cannot be that the Vice Chancellor decides how much to spend and how much not to spend, without approval. You have no such powers to change what the money was meant for," said Wamboka, who added that the VC was being held responsible for abuse of office.

The issue was flagged by Auditor General Nancy Gathungu, who noted that the university, then a constituent college of UoN, had failed to return Sh81.5 million meant for the CBA to the Ministry of Education.

Defending the action, Njiru said the university got verbal approval to repurpose the funds.

"Since the university was newly established and had no arrears to settle, these funds were reallocated to other budget votes through a budget review and utilised to refurbish the dilapidated facilities inherited from its predecessor," he said.