Auditor General Nancy Gathungu/FILE

Details have emerged of a mystery farmer who holds about 2,000 acres of Egerton University land for maize production.

An audit established that “the beneficial owner is not known and the value is not disclosed,” creating ambiguity over who controls the land.

The revelations were made in a new report, which has flagged multiple public universities sitting on billions of shillings worth of land and assets with no proof of ownership.

Auditor General Nancy Gathungu said at least 12 institutions lacked title deeds, lease agreements, or transfer documents for properties valued at over Sh19.5 billion.

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The situation has left the institutions highly vulnerable to grabbers, encroachment and mismanagement.

The audit points to a culture of negligence and poor asset management that has put prime university land at risk of being illegally acquired or misused.

“Several institutions did not have title deeds, transfer documents, or other legal records to confirm ownership of land, buildings, or intellectual property reflected in their financial statements,” Gathungu said.

Among the most affected institutions are Egerton University, Jomo Kenyatta University of Agriculture and Technology, Kenyatta University and South Eastern Kenya University.

In the audit covering June 30, 2024, JKUAT leads the list with a staggering Sh16.6 billion worth of land, whose title deed remains under the original owner’s name.

The parcel LR No 13538 has never been formally transferred to the university, raising questions about its legal ownership.

Kenyatta University reported 12.472 hectares of land valued at Sh123.3 million that has already been encroached upon. Another piece of land worth Sh880,000 also lacks ownership documents.

The university’s inability to secure its assets has left it exposed to squatters and illegal developers.

South Eastern Kenya University is missing documentation for land and intellectual property totalling Sh2 billion.

Similarly, Turkana University College and Masinde Muliro University of Science and Technology lack title deeds for land valued at Sh80 million each.

Laikipia University has unsupported land ownership records worth Sh547 million, while Murang’a University of Technology reported that 18 parcels of land valued at Sh54 million have been encroached upon and “hived off” from the main property.

Land is not only poorly managed, but the report also points to widespread failures in asset governance across the higher learning sector.

KU has been called out for reportedly spending Sh229 million on maintenance at its Kigali campus— without supporting documents.

Auditors further established that the university also continued using fully depreciated assets without revaluation.

The University of Nairobi leased out several parcels of land without approval from the University Council, the Ministry of Education, or the National Treasury, in violation of public finance regulations.

Jaramogi Oginga Odinga University of Science and Technology and Garissa University are using outdated and uncommissioned ERP systems, hampering financial transparency and accountability.

Pwani University reported land worth Sh116.7 million under illegal encroachment, with no eviction efforts in place to remove the squatters.

At Koitaleel Samoei University College, auditors established that the institution had not valued land and buildings recorded at Sh535 million.

The Auditor General also found that four universities, including KU and the University of Nairobi, failed to maintain updated fixed asset registers.

In some cases, assets were not tagged, accurately documented, or even recorded in the financial statements.

At KU, a perimeter wall and water tanks valued at Sh142 million were not recorded in the financial statements, while TUK’s assets of Sh90 million lacked code lists, voucher numbers and asset locations.

Garissa University’s fixed assets register was incomplete and assets were not tagged or accurately documented.

Additionally, the University of Nairobi maintained its fixed assets register in an unprotected Excel file, which is vulnerable to unauthorised edits or manipulation.

“These deficiencies contravene Regulation 143 of the Public Finance Management (National Government) Regulations, 2015, which mandates all public entities to keep accurate, comprehensive and up-to-date asset registers,” Gathungu said.

The report further notes that some universities hold idle assets, including Jomo Kenyatta University of Agriculture and Technology, which has investments worth Sh418.9 million in a non-operational subsidiary, JKUAT Noodles Limited.

Moi University was also cited for holding substantial agricultural land that remains unutilised.

The Auditor General has called for urgent intervention to secure university assets, streamline record-keeping and enforce compliance with asset management laws.

She further recommends strengthening governance and oversight mechanisms to prevent further loss of public property.