Audit exposes 1,500-acre land grab at Egerton University

Unknown private individuals are reported to have occupied more than 1,500 acres belonging to Egerton University and cultivated maize and wheat in the absence of a formal agreement, according to a new audit report.

The report by Auditor General Nancy Gathungu states that the parties later failed to honour a profit-sharing arrangement, resulting in a loss of Sh24.2 million to the institution.

Covering the financial year ended June 30, 2025, the report warns that the situation poses a risk to the university’s ownership of the land. It cites council resolutions, missing correspondence, police reports and the presence of armed settlers on the property.

According to the auditor general, the university council held a special meeting on February 29, 2024, and resolved to avail 2,000 acres for maize cultivation to enhance national food security.

The decision was communicated to the Cabinet Secretary for Education in a letter dated the same day.

However, the minutes also required that a second letter be written to the CS seeking further guidance on 1,500 acres set aside for national food safety.

But when auditors checked in September 2025, there was no correspondence from the Cabinet Secretary or the Ministry of Education providing any guidance on the land in question.

“It was not clear what the exact acreage of land set aside was, that is, whether it was 1,500 or 2,000 acres, as per the council minutes,” the report states.

The report indicates that, despite the absence of a formal agreement or government guidance, individuals proceeded to plough 1,500 acres. The land was first tilled in March 2024 and again in August 2024.

The university reported the matter to Njoro Police Station, where an OB number (No 50/30/09/2024) was issued. In September 2024, the vice chancellor wrote to the principal secretary in the State Department for Higher Education seeking government intervention over security concerns on the land.

But management did not provide any land lease agreement between the university and the private individuals for audit verification.

Gathungu’s report details that in November 2024, the university and a representative of a company associated with the cultivation held a meeting.

During that meeting, the company agreed to calculate production costs, yields and net profit, and to share the profit after harvest on a 50:50 basis.

But after the company harvested the wheat in January 2025, it did not honour the agreement.

According to university records, the institution suffered a loss valued at Sh24,189,987.

The university wrote to the Ministry of Education on January 17, 2025, and again on March 28, 2025, seeking intervention.

At the time of the audit in September 2025, the ministry had not provided a way forward. The situation has since deteriorated further.

“Available information indicated that the land had been encroached and irregularly occupied by illegal and armed settlers who could not allow the university to make use of its land,” the auditor general’s report states.

Management has not provided any report from security agencies, including the National Police Service, indicating what measures are being taken to address the reported occupation of the land.

“In the circumstances, there is a risk of the university losing the parcel of land measuring 1,500 acres to illegal settlers or parties,” Gathungu warns.

The audit also found that no committees were set up to facilitate management of the asset as required by legislation.

Additionally, all acquisitions or assignments of immovable property require notification to the national or county treasury in consultation with the National Land Commission or the ministry responsible for lands.

None of the required documentation was provided for audit verification.

The irregular use of university land was one of several serious issues raised in the audit report.

Also cited are the irregular payment of security expenses, unsupported fuel expenditure and long-outstanding receivables.

The auditor has further flagged stalled projects worth Sh435 million, and a negative working capital of Sh6.93 billion.

In its management response included in the report’s appendices, the university provided a detailed narrative of events.

It started by stating that the council had initially approved 2,000 acres for national food security.

After a clarification from the Cabinet Secretary, the council reconsidered its decision and set aside 2,000 acres from Nongongeri Farm.

The university said it waited for further advice from the ministry on identifying a strategic partner, but none came.

In March 2024, three individuals arrived at the university without any letter of introduction, claiming they had been sent to till the land.

Later, a company went to the university with an unreferenced letter presenting an offer for a partnership in commercial maize farming.

The university reported the matter to police on March 29, 2024 (OB No 21/30/03/24), stating that investigations were ongoing.

“From the foregoing, the land was not leased out as alleged; the said company illegally invaded the university land without authority/lease,” the university stated in its response.

At the time of the audit, the Ministry of Education had yet to provide direction, police investigations were still ongoing, and settlers occupied the land.

Gathungu sounded the alarm that Egerton University risks losing 1,500 acres of its ancestral land permanently unless urgent action is taken.

Also flagged is irregular security expenses of Sh4.5 million to the national police service, fuel expenditure of Sh20 million, and a negative working capital of Sh7 billion.

The auditor concluded that the college is technically insolvent and is depending on government support to sustain operations.