Moi University Under Fire Over Ksh 29.8 Million Gate, Fraud Allegations, and Questionable Investments

Moi University management is facing intense scrutiny following the revelation of a Ksh 29.8 million expenditure on the construction of the institution’s gate, along with allegations of internal fraud and a controversial investment decision.

Appearing before the National Assembly’s Public Investments Committee on Education on September 18, Vice Chancellor Prof. Isaac Kosgey admitted that the original budget for the gate was Ksh 4.8 million. However, this plan was abandoned because the gate was situated on a road reserve. A new tender of Ksh 25 million was issued, with the institution paying the full contract amount despite the project being incomplete.

The revelation left committee members, led by Bumula MP Jack Wamboka, questioning how an insolvent institution could justify such a hefty price for a gate. "You build a gate of Ksh 24 million and yet you are insolvent? What is on this gate, is it a storied gate?" Wamboka asked, visibly baffled.

This is not the first time the university’s gate has sparked public outrage. In December 2023, Moi University was criticized on social media after announcing a launch ceremony for the “expensive” gate, posting images of the staff during the event.

In a further blow to the university's credibility, the committee heard disturbing evidence of fraudulent activities involving university staff. An audit revealed that Ksh 25 million in student fees had been diverted to a private account, with several suspicious entries made by employees who had access to the fee system. Despite one of the staff members being suspended in 2018, the case dragged on without resolution, raising concerns about the university’s internal oversight mechanisms.

Prof. Kosgey acknowledged the fraud but distanced the administration from the malpractices, claiming the employees acted independently. While two staff members were dismissed, one was controversially reinstated after an appeal.

The scrutiny deepened when the committee questioned a Ksh 3 billion loan taken by the university to purchase a textile company. Despite only 600 of the university’s 30,000 students pursuing textile-related courses, the investment was made, leading to significant losses for the institution. Committee members described the move as reckless, further fueling concerns about the university's financial management.

With these revelations, Moi University is now under pressure to address both its financial and governance shortcomings. The public, lawmakers, and stakeholders are calling for accountability, with many questioning how such decisions were allowed to be made at one of Kenya’s leading higher education institutions.

As scrutiny intensifies, the Moi University saga will likely lead to deeper investigations into public university financial governance. The institution's next steps, particularly in addressing both the gate expenditure and the fraudulent activities, will be critical in restoring public confidence. Moreover, there are growing calls for reforms across the sector to prevent such financial mismanagement from recurring.