EACC Probes Alleged Fraud and Mismanagement in UoN Property Leases Worth Billions

The Ethics and Anti-Corruption Commission (EACC) has intensified its investigation into alleged fraudulent leasing and mismanagement of University of Nairobi (UoN) properties, with assets potentially worth billions of shillings at stake.

A letter dated April 2, 2025, obtained by Kenya Insights, reveals that the EACC has demanded detailed documentation from UoN by Monday, April 7, 2025, as part of its probe into irregular and unlawful leasing practices.

New allegations of mismanagement by the Vice-Chancellor and the leasing of university land to private entities without proper approval have further deepened concerns about governance at Kenya’s premier public university.

The EACC’s investigation targets a range of UoN-owned assets, including 10 acres at Kanyariri Farm, 40 acres behind ANP hostels in Loresho, 100 acres at Kibwezi Field Station, and 20 acres leased to Shamba Café Hotel in Loresho Ridge, Nairobi.

Other properties under scrutiny include six acres near Dusit Hotel, a plot in Spring Valley near a shopping center, residential houses along Ngong Road, and properties in Arboretum Drive and Lavington.

The commission, in its letter to UoN’s Acting Vice Chancellor, Prof. Margaret Jesang Hutchinson, stated that it is investigating “allegations of irregular and unlawful leasing out of the parcels of land owned by the University of Nairobi.”

To finalize its investigation, the EACC has requested specific documents, including lease or tenancy agreements, minutes approving the leases, correspondence between UoN and lessees, proof of any change in land use, and other relevant information.

New Allegations of Mismanagement Surface

Prof. Margaret Jesang’ Hutchinson , the acting Vice Chancellor of the University of Nairobi

Further details have emerged about the extent of alleged mismanagement at UoN, pointing to a pattern of procedural violations and abuse of office.

According to a document titled “Mismanagement of University Assets,” the Vice-Chancellor has been accused of unprocedurally leasing university land without proper approval from the National Treasury, as required by the Public Procurement and Disposal Act.

The document highlights several specific cases of concern:

– A plot in Spring Valley, originally used as a satellite office for Koitalei Samoei University, has been repurposed by a private developer for a petrol/filling station.
– A plot near Kipevu School along Waiyaki Way and another that was once Prof. Mukunya’s residence in Lavington (formerly Principal of CAVS) have been leased to private individuals not employed by UoN.
– One hundred acres of Kanyariri Farm in Upper Kabete and 20 acres in CAVS, leased to a foreign investor for Shamba Café Hotel, lack proper documentation.
– Parts of Kibwezi Farm have been leased to Indian investors for 100 years, raising questions about the terms and approval process.
– Residential houses along Ngong Road and Arboretum Drive, as well as six acres near Dusit Hotel, have been let or sold unprocedurally to non-university staff.
– On February 25, 2023, the Second Lady, Mrs. Dorcas Rigathe, visited Upper Kabete Campus and allocated 100 acres of land to an MP for a school project, with an additional 10 acres in Kanyariri Farm from Lower Kabete dished out without proper documentation or photos/videos.

The document also notes that 40 acres behind ANP hostels in Upper Kabete were unprocedurally leased to Kenya Seed Company, and six acres of Upper Kabete land near Farasi Lane along Spring Valley Road were similarly mismanaged.

These actions, allegedly taken without consulting the UoN Council or adhering to legal protocols, have fueled accusations of abuse of office by the Vice-Chancellor.

Auditor General and Uasu Raise Red Flags

The EACC’s probe was prompted by concerns from the Universities Academic Staff Union (Uasu) and findings from the Auditor General.

Uasu’s UoN chapter secretary, Dr. Maloba Wekesa, highlighted an Auditor General’s report that questioned the leasing of university properties, including Lower Kabete Road (LR No. 1870/111/71), Kayahwe Road House (LR No. 1/203), and Spring Valley (LR No. 7468/9).

The report noted a lack of transparency in how lessees were identified and an inability to trace income from these properties in UoN’s financial records. In one case, a parcel was leased to an “unknown person,” raising suspicions of mismanagement.

Dr. Wekesa called for immediate investigations and criminal action against those responsible, urging the recovery of lost public funds and the cancellation of illegal land deals. “Restoring public faith in the University of Nairobi’s fiduciary system is of prime importance to all stakeholders,” he emphasized in a letter to the EACC.

Financial Mismanagement and Irregular Payments

The investigation coincides with broader financial challenges at UoN. Prof. Hutchinson, while appearing before the National Assembly’s Education Committee, disclosed that the university is grappling with pending bills totaling Sh13 billion, including debts to the Kenya Revenue Authority, pension funds, and staff welfare programs.

She assured the committee that the university council would review its financial sustainability annually to ensure compliance with legal and governance standards.

Uasu further alleged financial irregularities in the proposed UoN Engineering and Science Complex, where nearly Sh100 million has been spent—primarily on allowances and a feasibility study—with no tangible progress.

The union pointed to over Sh12 million in “irregular and illegal” payments to Mr. Brian Ouma, Director of University Advancement, over the past decade, accusing the university council of failing to address the issue.

This probe adds to UoN’s mounting challenges, including a management crisis and a Sh72 billion debt burdening public universities.

The university has also faced labor disputes, with Uasu threatening a strike over delayed retirement age reforms, and governance issues, including allegations of mismanagement by the university council.