KU sank Sh680m in its shut Rwanda campus, says audit

The main entrance of Kenyatta University. 

Photo credit: File | Nation Media Group

Kenyatta University (KU) is on the spot for spending Sh679.8 million on its Kigali campus which has not admitted any students and is presently closed.

Auditor-General Nancy Gathungu (right) says the institution had capital work in progress totaling Sh229,069,813 incurred in respect of the Rwanda campus.

CWIP represents the costs incurred on a fixed asset that is still under construction at the balance sheet date or is not yet readily available for use.

Ms Gathungu said KU paid Sh22,710,923 in the year to June 30, 2023, and spent a further Sh12,217,194 on running the campus.

“Review of records revealed that the University acquired the Rwanda campus in the year 2015 at a cost of Sh314,894,910 and incurred an expenditure totaling Sh312,819,454 on renovations,” he said.

“However, the campus work in progress was not supported by signed contract, pre-inspection reports, bill of quantities, award letter, inspection and acceptance report, and project implementation reports” Ms Gathungu said.

The Auditor-General said the ownership documents for the campus were also not provided and the expenditure on renovation was contrary to the National Treasury approvals for the purchase of the Kigali campus which recommended procurement of a ready-to-occupy building.

Ms Gathungu said a review of records revealed that the contract sum for renovation at the campus was Sh32,641,553.

She said the contractor has been paid Sh312,819,454 to date resulting in an overpayment of Sh280,177,901 or 858 percent of the contract sum.

“The amount includes Sh22,710,923 paid in the year under review. In addition, expenditure totaling Sh12,217,194 was incurred on running the campus,” Ms Gathungu said.

Ms Gathungu said the campus has not admitted any students and is presently closed. She said the expenditure is therefore not justified. The campus is said to have been shut down due to operational issues occasioned by the Rwandan government.

KU spent Sh420.7 million to open the Kigali campus and Sh98 million to renovate it before it was shut in 2018 without admitting a single student.

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