The National Assembly’s Public Investments Committee (PIC) on Governance and Education is initiating new investigations into the construction of a 1,000-bed students’ hostel at Jaramogi Oginga Odinga University of Science and Technology (JOOUST). This decision comes in response to audit concerns regarding contract variations, payments totaling Ksh844 million, and an ongoing legal dispute with the contractor.
On July 9, 2026, the committee, led by Dick Maungu, requested that former Vice-Chancellor Stephen Gaya Agong, along with project consultants and auditors, present themselves to clarify the increasing costs of the project and confirm whether procurement laws were adhered to.
The hostel project, awarded to Sasah General Merchants in February 2010 for Ksh663.9 million, was originally set to be completed within three years. However, certified payments eventually escalated to Ksh844.1 million.
Auditor-General reports for the 2023/24 and 2024/25 financial years indicated that the university did not provide necessary documentation for contract variations amounting to Ksh180.1 million. Furthermore, auditors highlighted the absence of completion and handover certificates, even though students are already residing in the hostel.
The committee also discovered that the contractor has filed a lawsuit against the university in civil case No. E002 of 2023 for alleged unpaid dues, raising concerns about potential additional legal costs for taxpayers.
Kisumu Regional Office representative from the Auditor-General’s office, CPA Kennedy Ongoi, cautioned that this litigation could lead to unnecessary losses of public funds. He emphasized the risks involved when a contractor takes a public institution to court, stating that the institution could incur legal fees and penalties—expenses that are often avoidable with proper project management.
During his appearance before the committee, Agong, who served as Vice-Chancellor until June 19, 2023, mentioned that the university had disbursed nearly Ksh600 million during his term, asserting that the final payment certificate indicated only Ksh4.8 million.
However, committee chairperson Dick Maungu challenged this assertion, pointing out that Certificate Number Five, prepared on June 9, 2023—just ten days before Agong’s departure—showed cumulative certified payments of about Ksh844 million.
“You left the university on June 19, 2023, and prior to your exit, Certificate Number Five had already been prepared, indicating Ksh844 million. This suggests that all of this occurred during your tenure,” Maungu stated.
Documentation from the committee revealed that the project experienced several contract variations, including additional payments of Ksh19.8 million, Ksh38.1 million, Ksh44.1 million, Ksh528,000, and another Ksh79.6 million categorized as “fluctuations.” Maungu sought clarification on whether these additional payments adhered to the Public Procurement and Asset Disposal Act.
“There’s a specific category called fluctuations amounting to Ksh79.6 million. We need to clarify how this fits within procurement law because fluctuations and variations are distinct,” he noted.
Agong denied approving the contested Ksh79.6 million, asserting it was not included in the final accounts he signed. He contended that some of the expenses might have been allocated to maintenance works after students moved into the hostel, including repairs following a fire incident.
He also defended the decision to retain the same contractor for maintenance, explaining that hiring a different contractor while the hostel was occupied would have been impractical. However, committee members remained skeptical of his explanations.
