A total of 21 public universities in Kenya are on the brink of financial collapse, according to a new report by Auditor General Nancy Gathungu, which reveals that the institutions have accumulated a combined negative working capital of Sh42.5 billion, meaning their short-term debts far exceed their current assets.
In her audit for the 2023/2024 financial year, Gathungu warned that the widening deficits raise serious doubts about the universities’ ability to meet day-to-day financial obligations, including staff salaries and creditor payments.
Leading the list is Kenyatta University, which posted a deficit of Sh10.9 billion, followed by the University of Nairobi (UoN) at Sh8.0 billion. Other institutions facing major shortfalls include Egerton University, Jomo Kenyatta University of Agriculture and Technology (JKUAT), Moi University, and the Technical University of Kenya (TUK).
“These substantial deficits reflect serious liquidity challenges, with implications on creditor payments, staff remuneration, and overall service delivery,” Gathungu noted in the report.
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The audit reveals that many universities continue to operate on the assumption of government bailouts or creditor goodwill, despite mounting liabilities. Egerton University tops the debt chart with Sh7.4 billion, followed by JKUAT at Sh6.6 billion, Moi University at Sh3.6 billion, and TUK at Sh5.6 billion.
Other institutions in financial distress include Multimedia University of Kenya (MMU), with Sh1.6 billion, Dedan Kimathi University with Sh21.2 million, University of Kabianga with Sh609.6 million, and South Eastern Kenya University with Sh3.1 million.
Taita Taveta University has accumulated Sh259.5 million in debts, while Alupe University College owes Sh49.7 million. Meru University of Science and Technology and Chuka University face debts of Sh198.1 million and Sh240.2 million, respectively.
Additional institutions flagged include Garissa University with Sh22.3 million, Maasai Mara University with Sh280.5 million, Laikipia University with Sh55.1 million, and the Technical University of Mombasa with Sh334.5 million.
The report also noted smaller but notable liabilities at the Kenya Advanced Institute of Science and Technology (Sh510,685), Kisii University (Sh189,440), and Pwani University.
By Masaki Enock
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