Moi University Spent Ksh.29.8 Million on Gate Project Amid Audit Queries, Fraud Scandal Revealed

Moi University spent a staggering Ksh.29.8 million on two projects to construct its gate, according to an audit report presented to the National Assembly’s Public Investments Committee on Education. The initial budget of Ksh.4.8 million was scrapped when it was discovered the gate was on a road reserve, forcing the university to retender for Ksh.25 million, a decision that sparked questions from the committee.

Vice Chancellor Prof. Isaac Kosgey, who appeared before the committee, explained that the Kenya Rural Roads Authority advised against the initial location. However, the committee, led by Bumula MP Jack Wamboka, was puzzled over the expenditure. “You build a gate for Ksh.24 million and yet you’re insolvent? What’s on this gate, is it a storied gate?” Wamboka asked.

Further audit findings revealed a more disturbing issue: employees diverted Ksh.7.7 million in school fees into a private bank account. Kosgey acknowledged the fraud, explaining that the funds were channeled into the university’s welfare account. “It was a case of fraud where some employees colluded with the bank to fleece the school,” he admitted. Although disciplinary action was taken, one employee who was dismissed successfully appealed and returned to the institution, drawing frustration from the committee.

The afternoon session continued to scrutinize the university’s financial decisions, particularly its acquisition of the struggling textile company Rivatex. Moi University took a Ksh.3 billion loan from Exim Bank to purchase and upgrade the company, despite its Ksh.300 million loss in 2023. Committee members questioned why a financially strained university would prioritize a non-essential investment over improving learning facilities.

Wamboka pressed for answers, pointing out that only 600 out of 30,000 students pursue textile courses. “If you were given Ksh.3 billion, wouldn’t you improve learning facilities?” he asked. Prof. Kosgey defended the decision, stating that the university had been financially stable when Rivatex was purchased in 2008.