University of Nairobi ordered to explain pension and tax arrears

The National Assembly Public Investments Committee on Governance and Education has given the University of Nairobi two weeks to provide documentary evidence regarding billions of shillings in unpaid pension contributions and statutory deductions.

During a review of Auditor-General reports spanning the 2020/2021 to 2024/2025 financial years, lawmakers questioned university management about the accumulation of these liabilities. Audit findings indicated that during the 2021/2022 financial year alone, the institution failed to remit approximately KSh4 billion in pension contributions and KSh50 million in Pay As You Earn (PAYE) taxes.

Committee Chairperson Dick Maungu stated that verbal explanations from university officials, including Vice-Chancellor Prof. Eng. Ayub Njoroge Gitau, were insufficient. The committee demanded verifiable records to assess the extent of the debt and the effectiveness of proposed recovery measures, noting that unpaid tax obligations could lead to increased penalties and interest.