Kenya: MPs Give University of Nairobi Two Weeks to Explain Sh10bn Pension Deficit

What the report says

Kenya’s National Assembly Public Investments Committee on Governance and Education has given the University of Nairobi 14 days to provide documents explaining a growing pension and tax deficit. The request came during a review of Auditor-General reports covering the 2020/2021 to 2024/2025 financial years, with MPs seeking proof of how the liabilities accumulated and what steps management has taken to address them.

The committee, chaired by Luanda MP Dick Maungu, questioned Vice-Chancellor Prof Ayub Njoroge Gitau and senior finance কর্মকর্তas over unpaid pension contributions, PAYE taxes and the university’s recovery plans. MPs said verbal assurances would not be enough and asked for payment records, correspondence with regulators and other supporting evidence. Audit findings cited in the report showed unpaid pension remittances of about Sh1.4 billion and PAYE of Sh50 million in one financial year, while the pension deficit was described by management as having risen from roughly Sh5 billion to more than Sh10 billion.

University officials told the committee that payments to retiring staff had resumed and that talks were under way with pension trustees, the Kenya Revenue Authority and other agencies. They also pointed to financial pressure from collective bargaining costs, lower student numbers, changes in funding and the impact of the Covid-19 period. The institution said it is considering asset commercialisation, including possible use of university land, and has sought government funding arrears of just over Sh3 billion. The committee will assess the submitted records before deciding on the next steps.