Bishop Gatimu Ngandu Girls High School is under scrutiny after its principal told MPs that a Sh1 million investment in shares listed on the Nairobi Securities Exchange (NSE) generated only Sh5,381 in dividends over the year. The disclosure came as the National Assembly Public Investments Committee on Governance and Education examined Auditor-General reports covering the school’s accounts from 2020/21 to 2024/25.
The dividend represents about 0.54% of the Sh1 million investment for the year. But dividends alone do not establish the investment’s overall return because the value of the shares can rise or fall. MPs are therefore seeking more information, including the specific shares held, the investment’s history, its approvals and its current value, before the committee makes further findings.
Why the investment came under scrutiny
The issue originated in an Auditor-General query over Sh1,583,111 recorded as short-term investments in the school’s financial statements as at June 30, 2021.
Auditors initially said the school had not supplied investment certificates or other supporting documents needed to establish the existence and completeness of the reported balance. Subsequent checks established that funds had been invested through the NSE, although auditors said the money was later transferred back to the school’s operational account during the audit review.
Principal Jane Njuguna told the committee that the Sh1.583 million figure comprised several balances, rather than Sh1 million entirely invested in shares.
| Investment or balance identified by the school | Amount |
|---|---|
| NSE shares | Sh1,000,000 |
| NDCU Net investment | Sh406,714 |
| KCB account balances | Sh156,110.40 |
| Barclays Bank Optimum account | Sh20,287 |
| Total | Sh1,583,111.40 |
The school said the NSE portion was generating finance income. When Kilome MP Thaddeus Nzambia asked how much the investment was actually returning, Njuguna said the school had received Sh5,381 in dividends during the year.
MPs demand details of the shares
Committee members questioned whether the investment provided sufficient value for a public school and asked the administration to explain why funds had been placed in the stock market while the institution continued to face other financial demands.
Committee chairman Dick Maungu asked the school to demonstrate the investment’s value for money, while Nzambia sought clarification on whether the Sh5,381 represented monthly, annual or cumulative earnings.
The committee also sought details of the companies whose shares the school owns. Reports from the hearing identified Absa Bank and Centum Investments in connection with the investment, although school officials were pressed to provide documentary evidence establishing the precise holdings.
The distinction matters because a dividend is only one component of a share investment’s financial performance. A proper assessment would also require the acquisition cost, current market value, dividends received over the relevant period and any gains or losses arising from changes in share prices.
Questions over approval of public funds
Another unresolved issue is whether the school obtained the necessary government approval before investing the funds.
An Auditor-General representative told the committee that investments by public institutions require the relevant approval process involving the National Treasury through the parent ministry. The committee consequently asked the school to produce documentation showing whether that approval had been obtained.
The audit history also illustrates why documentation became a central concern. The 2022 Auditor-General report gave a qualified opinion and specifically identified the Sh1,583,111 short-term investment as unsupported by records such as an investment certificate, meaning its existence and completeness could not initially be confirmed.
Where did the money come from?
MPs also questioned how the school had accumulated sufficient funds to make the investment.
Kiminini MP Kakai Bisau asked about the source of the savings and why the institution had invested money while parents continued to contribute towards school needs. Njuguna said the school’s savings had partly come from income-generating activities, including coffee farming.
She said the school no longer had enough land for coffee production because of expansion and other agricultural activities.
The committee additionally sought to establish whether parents had been consulted about the investment and whether the decision appeared in relevant meeting minutes.
What the committee wants next
The school has been directed to provide outstanding records on the investment, including documentation concerning its approval, the shares held and the returns generated. The matter has been deferred pending the submission of that information.
For now, the Sh5,381 figure should be understood as the reported dividend income for the year, not necessarily the complete financial return on the Sh1 million shareholding. The committee’s unresolved questions—particularly the investment’s current market value, exact shareholdings, authorization and long-term performance—will determine whether the low dividend reflects a genuinely poor-performing investment or simply one part of a broader return that has not yet been fully documented.