(Kajiado, Kenya) – Kampala International University (KIU) is auctioning off its dream campus in Kenya’s Kajiado County. This academic castle, which sits on a sprawling 61.3 acres in Kisaju, near the Nairobi-Namanga Highway—is up for grabs due to a staggering UGX 55.7 billion ($15 million) debt.
The campus is a veritable real estate of unfinished grandeur. It features a four storey administration block, five interconnected five storey tuition blocks, a four storey library (that is a lot of books to nowhere), and an array of other facilities including a guest house, powerhouse, and even a security guard block.
A Loan Too Far
The journey to the auction block began in 2014 when KIU took out a loan from Housing Finance to build this Kenyan ivory tower. The loan was supposed to be a sure bet, like a Kampala street vendor’s claim that their rolex is “authentic.” However, the interest rate of 9.5 percent compounded since January 2018 turned the loan into a financial nightmare, with the university now facing a repayment sum that could fund a very luxurious wedding for an entire clan.
The loan was initially for $10 million, but delays in disbursing the remaining $5 million led to a financial mess. KIU’s ambitious plans for their Kenyan campus, which was supposed to be their crown jewel, are now about to be auctioned off to the highest bidder, like a forgotten birthday gift.
The universities efforts to block the sale have been thwarted at every turn. The Supreme Court’s rejection of their second appeal was a crushing blow. The judges ruled that the case didn’t meet the constitutional criteria for their intervention. In simpler terms, the court wasn’t buying what KIU was selling.
As the auction date approaches, set for September 19, KIU’s Kenyan campus stands as a monument to failed ambition, like the once thriving Uganda Coffee brand that is now more famous for its empty promises than its brews. The auction represents not just a financial setback but a glaring lesson in the high cost of unchecked ambition and mismanagement. The financial implications are expected to be as severe as a Murchison Falls flood.
