Moi University Spends Ksh. 29.8 Million On Gate Construction .
Moi University Spends Ksh. 29.8 Million On Gate Construction . Moi University Spends Ksh. 29.8 Million on Gate Construction: Key Audit Findings.
An audit report has revealed that Moi University spent Ksh. 29.8 million on two separate projects to build a gate for the institution. The initial budget was set at Ksh. 4.8 million but had to be abandoned after it was discovered that the location of the gate was on a road reserve. This led to the university re-tendering the project at a much higher cost of Ksh. 25 million, raising audit concerns.
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Abandoning the First Gate Project
Vice Chancellor Prof. Isaac Kosgey, speaking before the National Assembly’s Public Investments Committee on Education, explained that the Kenya Rural Roads Authority (KeRRA) advised the university to stop the original project due to its location on a road reserve. The university was forced to seek a new tender for the construction of a different gate.
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Questions Over Ksh. 25 Million Gate
Committee members, led by Chairperson MP Jack Wamboka, expressed concerns over the high cost of the gate. Wamboka questioned how the university could afford a Ksh. 24 million gate while facing financial difficulties, wondering aloud, “Is this a storied gate?”
Financial Mismanagement and Fraud
During the session, it was revealed that employees of Moi University diverted Ksh. 7.7 million in student fees into a private welfare account. Prof. Kosgey admitted that this was a case of fraud and that disciplinary action had been taken. Some employees were sacked, though one managed to appeal and return to the institution.
Rivatex Acquisition Controversy
The committee also raised questions about the university’s decision to acquire Rivatex, a textile company, with a Ksh. 3 billion loan from Exim Bank. Of the total, Ksh. 600 million was spent on the initial purchase. The loan came despite the university’s financial struggles and the fact that only a small number of its students pursue textile-related courses.
MP Wamboka criticized the decision, suggesting the funds could have been better used to improve educational facilities. Prof. Kosgey defended the acquisition, saying the university was financially stable at the time and that Rivatex was intended to serve as a learning laboratory for students.
Conclusion
The audit report has raised several issues regarding Moi University’s spending decisions, particularly in relation to the construction of the Ksh. 29.8 million gate and the purchase of Rivatex. The Public Investments Committee continues to press for answers on these financial missteps.
