The Moi University management spent a total amount of Ksh.29.8 million in two different projects to build the higher learning institution’s gate, an audit report has revealed.

Speaking when he appeared before the National Assembly’s Public Investments Committee on Education on Wednesday, Moi University Vice Chancellor Prof. Isaac Kosgey said they initially had a budget of Ksh.4.8 million, but this was abandoned because the gate was on a road reserve.

Prof. Kosgey told the Bumula MP Jack Wamboka-led committee that the university then tendered for building a new gate at a cost of Ksh.25 million, triggering audit queries.

“We were forced to abandon the first project because we were advised by Kenya Rural Roads Authority (KeRRA) that the gate was on a road reserve,” stated the Vice Chancellor.

Members of the committee wondered how the university had paid the whole contract amount without the contractor finishing the building of the gate.

“You build a gate of Ksh.24 million and yet you are insolvent? What is on this gate, is it a storied gate?” Committee Chair Wamboka posed.

The committee also heard how employees of the university diverted millions of shillings being paid as school fees to a private bank account.

According to the audit report, the employees diverted Ksh.7.7 million meant to be paid to Moi University into their Moi University Welfare account.

Prof. Kosgey acknowledged that this was indeed a case of fraud, adding that once it was noticed appropriate action was taken.

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

The answer drew ire from the committee members who demanded to know the action that was taken against the said employees.

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

In a tough afternoon for the Vice Chancellor, it was also revealed that the cash strapped university received a Ksh.3 billion loan from Exim Bank to buy textile company Rivatex.

The committee heard that the management used Ksh.600 million to acquire the company before the Treasury extended another Ksh.3 billion loan ostensibly to upgrade the facility with modern equipment.

This was after it turned out that the textile company was on a loss-making streak, and posted a Ksh.300 million loss in the year to June 2023.

“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,” observed Wamboka.

The MPs pressed for answers on why the varsity, through Treasury, opted for the Ksh.3 billion yet only an average of 600 students out of 30,000 pursue textile-related courses.

“If you were given Ksh.3 billion, would you not improve learning facilities? Are you getting value for money?” Wamboka asked, saying it beats logic why a cash-strapped university would opt for a non-priority project.

He said: “You have more urgent needs but opted to take a loan and pump it in textile which only serves a small component of production.”

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

“We had money up to 2008 and it was decided we buy Rivatex as a lab for our students. In 2017, the government came in and there was a discussion on it and we used Ksh.600 million,” he stated.