A National Assembly committee on Wednesday heard how former Karatina University Vice Chancellor Prof Muchai Muchiri paid himself Sh12.49 million in gratuity just two days before his retirement, bypassing the university’s official clearance process.

The Public Investments Committee on Governance and Education, chaired by MP Jack Wamboka, also questioned Sh1.8 million in transport allowances drawn by Muchiri during the 2022/2023 financial year, despite having access to a university vehicle.

According to a report by the Auditor General, gratuity is only payable after the end of a contract and subject to official clearance. The committee summoned both Muchiri and current Vice Chancellor Prof Linus Muthuri for questioning.

“It is clear that the former Vice Chancellor cleared himself before his contract ended, which is against the law. As we speak even now, it is clear that he has never cleared from the institution, making the payment illegal,” Wamboka said.

“With this, the committee directs that the university recovers the said money, institute a clearance check in accordance with HR policies, and set up a committee to determine what is payable to him,” he added.

Muchiri admitted before the committee that he authorised the payment.

“Yes, I paid myself,” he said in response to MPs’ questions.

Current VC Prof Muthuri confirmed that Muchiri has never officially cleared from the university, despite exiting office in 2023 and receiving all his dues.

On the Sh1.8 million transport allowance, MPs questioned how Muchiri could draw the allowance while also using a university-provided vehicle.

“You cannot have both, and that is why this was flagged. If Prof Muchai chose to use his own vehicles, then his transport allowances should have been frozen,” said Kiminini MP Maurice Bisau.

Prof Muthuri explained that only Sh270,000 of the flagged amount was paid for trips beyond the official home-to-work agreement, adding that Muchiri mostly used his personal vehicle and not the institution’s car.

“This was an agreement anchored in his contract… It was also a practice that we inherited from Moi University,” Muthuri said.

“The trips which the former VC undertook and were not from his house to work are what constituted Sh270,000. As an institution, we formed a committee to probe this matter, and it was agreed that he pays the amount. He was surcharged and has already paid it back,” he added.

Prof Muchiri defended his actions, citing a lack of vehicles at the institution during his tenure.

“I only used the university vehicle when going for official duty, but for my home-to-work commute, I used my personal vehicle… this came about because we lacked enough vehicles,” he stated.

“The terms and conditions of my contract also provided for use of a vehicle from home to the office, and when the official vehicle was not available, one had to be provided to me,” he added.

However, MPs dismissed the explanation and faulted the university for forming an internal committee to investigate the issue instead of relying on the Auditor General’s report.

“You cannot come before us with your own figure of Sh270,000. You cannot usurp the constitutional role of the Auditor,” said Wamboka.

“The amount that has been flagged is Sh1.8 million and not Sh270,000. We want an explanation on that,” added Imenti Central MP Moses Kirima.

The committee directed the university to recover the entire Sh1.8 million within six months, warning of serious consequences for non-compliance.

“When a contract of an institution is inconsistent with the laws of the country, it becomes repugnant… the university must comply with the law and recover the full amount, failure to which there will be dire consequences,” Wamboka said.