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Moi University Spent Sh29.8M To Build A Gate Budgeted For Sh4.8M, Audit Reveals

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Details disclosed before the National Assembly’s Public Investments Committee on Education have revealed how Moi University spent a whooping Sh29.8 million to build the university gate.

The revelation unearthed in the auditor general report showed the institution management initially had a Sh4.8 million budget but it was demolished because the gate was on a road reserve.

The University led by the Vice Chancellor Isaac Kosgei then allocated Sh25 million to build a new gate in a different location raising concerns from the Auditor General.

 “We were forced to abandon the first project because we were advised by Kenya Rural Boards Authority KERRA that the gate was on a road reserve,” VC Kosgei told MPs.

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MPs questioned why the university allocated the colossal amounts on building a university gate yet it was facing other pressing needs in the higher learning institution including delayed salaries for staff.

“You build a gate of Sh24 million, and yet you are insolvent? What is on this gate, is it a storied gate?” the committee chair Wanami Wamboka posed.

Rivatex loan

The committee is also  investigating circumstances under which Rivatex was extended a Sh3 billion loan from Exim Bank following revelations that Moi University acquired the textile company at Sh600 million.

Treasury took the loan to upgrade the facility with modern equipment following details that the varsity would repay the loan which is maturing next year.

A crisis is looming as Rivatex has been making losses after it posted a Sh300 million loss in the year to June 2023.

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 “Your core mandate is education but you detour and invest in a company that is not functional. There is more to be done on this,” the committee chair said.

The university explained thet bought Rivatex to train textile engineering students, reach out to farmers, and produce fabrics.

“It was a small component…Jubilee sought to revive it and former President Uhuru Kenyatta agreed to connect us to the Exim bank to buy the equipment,” he said.

Kosgey said the university was liquid when the decision to purchase the textile firm was made.

 “If you were given Sh3 billion, would you not improve learning facilities? Are you getting value for money?” Wanami posed.

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MPs want the Industry Ministry, Education Ministry, Treasury, former VC Richard Mibeyi and any other person of interest to appear before the committee to explain the events.

Fraud allegations

This is at emerged that employees of the university colluded with bank officials to divert monies paid as school fees to a private staff welfare bank account.

Details in the Auditor General report show Sh 7.7 Million paid by Moi University students, Nairobi branch was swindled to a different account.

The Moi University Vice Chancellor admitted the fraud incident explaining that disciplinary action had been taken against the staff involved in the fraud.

 “It was a case of fraud where some employees colluded with the bank to fleece the school,” Kosgei said.

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“We did not take them to court, instead we took them through a disciplinary process and sacked them, but one them appealed and he his back at the institution,” he added.

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