How KU and JKUAT Lost Millions in Idle Rwandan Campuses.
Kenyatta University (KU) and Jomo Kenyatta University of Agriculture and Technology (JKUAT) are grappling with the disposal of properties worth millions of shillings in Kigali, Rwanda.
These campuses have remained unused since their closure in 2017 by the Rwandan government due to non-compliance with regulatory standards.
The two universities purchased the Kigali properties intending to establish campuses, but their plans were thwarted by operational challenges.
KU’s Kigali campus never admitted students before closure. Efforts to sell the properties have been futile, even as the universities urgently seek funds to mitigate financial challenges.
In February 2024, JKUAT advertised tenders to sell two properties in Kigali’s Kicukiro District, Gahanga Village, Karembure Locality.
The plots, covering 45,479 square meters, were valued at Sh19.8 million. Successful bidders were required to bid for both plots. However, the properties remain unsold.
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Simultaneously, JKUAT also sought tenants for its Westlands campus in Nairobi and another property in Lavington.
Spanning 2,013 acres, these properties—valued at Sh440 million, including land and buildings—were re-advertised with a deadline of November 19, 2024. The Westlands campus, closed in 2018, has similarly struggled to find a lessee.
Legal and Financial Challenges
JKUAT’s Kigali property is embroiled in a legal battle. A Rwandan national, Martin Higiro, was awarded Sh48 million in a 2018 Kigali commercial court ruling for breach of contract.
He had leased a building to JKUAT for its campus. After obtaining enforcement recognition from the High Court in Nairobi in 2023, JKUAT appealed, securing a stay of execution pending further hearings. The judgment was delivered on November 22, 2024.
KU’s attempt to sell movable property from its Kigali campus failed due to tender document errors.
Bidders were informed that reserve prices were not converted to Rwandan francs, rendering them unrealistically low. In a letter dated June 26, 2024, KU’s acting procurement head, Atichi Alati, expressed regret for the oversight.
“This anomaly renders the reserve prices unrealistically low hence the items were not awarded. We regret the error and apologise for the inconvenience caused,” reads a letter by the acting head of procurement Atichi Alati to one of the tenders.
Auditor-General’s Findings
The Auditor-General, Nancy Gathungu, flagged the universities’ foreign investments in her 2021 report. KU spent Sh518.2 million to establish campuses in Kigali (Sh420.7 million) and Arusha, Tanzania (Sh97.4 million), which were later closed due to legislative changes. The report highlighted the following:
| Campus | Investment (Sh) | Outcome |
|---|---|---|
| Kigali | 420.7 million | Closed; no financial recovery |
| Arusha | 97.4 million | Operational losses; assets redistributed |
KU management disclosed that Sh90 million spent on the Arusha campus for salaries, rentals, and operations was irrecoverable. Assets worth Sh7.4 million were relocated to the main campus without proper inventory.
Additionally, the Kigali campus accrued Sh28.9 million in unexplained costs post-closure. The university also has 12 stalled projects valued at Sh556.6 million, abandoned since 2018. Verification revealed vandalized perimeter walls and idle building materials on overgrown sites.
Broader Financial Woes
JKUAT’s investments have faced similar scrutiny. The university-owned JKUAT Noodles, established at a cost of Sh418.9 million, has ceased production, leaving all assets idle. The Auditor-General’s report questioned the value derived from such ventures.
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Both universities continue to face financial strain from their unproductive investments. While approval has been granted to dispose of the Kigali properties, recovery efforts remain sluggish, and the institutions are yet to address significant operational inefficiencies.
These challenges underscore the need for better financial planning and risk management in public universities.
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