Audit reveals Muchiri paid himself Sh13.4M in gratuity

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Audit Flags Sh13.4M Self-Payment by Former Karatina University Vice-Chancellor

NAIROBI — A parliamentary audit has exposed that former Karatina University Vice-Chancellor Prof. Mucai Muchiri paid himself Sh13.49 million in gratuity just two days before leaving office without formally clearing from the institution.

The revelation came during a hearing before the National Assembly Public Investments Committee on Education and Governance, which questioned top university officials about the payout flagged by the Auditor-General.

According to the audit report for the financial year ending June 30, 2023, Prof. Muchiri authorized and approved the payment while still in office. No clearance process had been completed, violating university policy on terminal dues.

In his testimony, Prof. Muchiri admitted to making the payment. “Yes, I paid myself,” he told the committee. He claimed the move was within his contract terms and that there was no requirement to wait until his exit to receive gratuity.

The report also listed an additional Sh971,000 that Prof. Muchiri received under a “value for money allowance.” The Auditor-General found no justification for that payment.

Karatina University’s current Vice-Chancellor, Prof. Linus Muthuri, confirmed to the committee that Prof. Muchiri has yet to officially clear with the university. He also admitted the former VC was paid Sh1.8 million in transport allowances, despite having access to a university vehicle.

Prof. Muthuri claimed the allowance covered days the vehicle was unavailable. However, MPs rejected that explanation, accusing him of enabling irregular payments.

“This is fraud. It’s illegal and unacceptable,” said Committee Chair Wanami Wamboka. “How do you justify paying transport allowances to someone who had an official vehicle? And how does someone clear themselves while still in office?”

Wamboka ordered the university to recover the Sh13 million from Prof. Muchiri within 30 days. He warned that failure to do so would result in sanctions against current university leadership.

“If you cannot recover the money, we will fine you for aiding the illegality,” Wamboka said. “This has never been done in accordance with HR policy, and the more you try to cover it up, the worse it gets.”

The committee also froze all pending gratuity or terminal benefit payments at Karatina University until a formal clearance and audit process is completed.

MPs issued a wider warning to all public universities and colleges, cautioning them against bypassing financial rules or launching new capital projects before completing ongoing ones.

“We are losing billions in stalled and mismanaged projects,” Wamboka said. “This culture of impunity must end. We will hold university leaders personally accountable for misuse of public funds.”

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