Machakos University is under intensified scrutiny following its response to the Auditor-General, which exposed significant financial concerns, including Sh558 million in outstanding receivables and weaknesses that led to a qualified audit opinion for the 2024/2025 financial year.
In its submission to the National Assembly Public Investments Committee on Education and Governance, the institution acknowledged the audit process and the weight of the issues raised, even as lawmakers pressed for accountability.
At the centre of the audit findings is a massive receivables balance that has drawn sharp attention from both auditors and legislators, raising concerns over recoverability and overall financial management.
According to the Office of the Auditor General (OAG), “The financial statement reflects trade and other receivables balance of Sh558,143,687, where the review of the debtor's record revealed debts amounting to Sh. 41,133,807 were more than five years old.”
The OAG further noted that, “The receivables increased by Sh319,633,831, representing approximately 134 per cent increase compared to the previous year's balance of Sh. 238,508,856.”
Despite the existence of a debt recovery framework, the audit flagged persistent inefficiencies. The report stated that, “Although the University management has established a formal Debt recovery policy to guide the effective management and control of receivables, the long outstanding debts have remained unpaid.”
Auditors also warned of potential financial risks, adding that, “Failure to recover receivables in a timely manner exposes the institution to the risk of financial loss through bad debts and the recoverability and other receivable balance of Sh558,143,687 could not be confirmed.”
Appearing before the committee, Vice-Chancellor Joyce Agalo defended the institution’s position, explaining that, “The student debts of Sh.51,650,906 that were outstanding for more than one year as at 30th June, 2025 are due from the current active students,” and added that, “The university has come-up with a clear debt acquisition process to avoid down payment policy of 75 percent before services are offered.”
Beyond receivables, the audit also flagged governance concerns, indicating non-compliance with regulations on committee composition. The OAG reported that, “ Review revealed that all committees have 5 members out of 8 members which translates to two-thirds of the full council members, which is contrary of the circular on management of state corporation circular which limits committee membership to less than one-third of the full board of obviate the risk of a committee transacting business as the full board, which is a breach of the law.”
The university is also under scrutiny over delays in the completion of a tuition and office block project.
The OAG revealed that “the contract was signed on 20th July,2017, with a contract period of one hundred and fifty-six weeks commencing on 20th July, 2017, to 20th July,2020, but the contract was subsequently revised to end on 5th October, 2025, as per the approval of the accounting officer dated 2nd May,2025.”
On project financing and progress, the report stated that, “A sum of 512,053,697 was paid to the contractor and sub-contractors for certified works as per interim certificate No.40 dated 7th November, 2024, and the project was approximately 81 per cent complete while the value of work certified to date was approximately 52 per cent of the contract sum.”
The OAG questioned value for money in the project, noting that, “The value for money paid for the project, totalling Sh. 512,053,697 could not be confirmed.”
Responding to the delays, the Vice-Chancellor told lawmakers, “The delay of the project has been occasioned by reduced exchequer funding, where in the year 2024/25, the project was not allocated any funds from the exchequer.”
The university’s Vice-Chancellor signalled an effort to address the audit concerns while cooperating with parliamentary oversight.
However, the revelations place Machakos University among a growing list of public institutions under pressure to strengthen financial controls, improve reporting accuracy, and resolve long-standing audit queries.
With the Sh558 million receivables now firmly in focus, the institution is expected to face further interrogation by lawmakers as the push for transparency and accountability in the management of public resources gathers momentum.