Cash strapped Garissa University may shut down if the government does not intervene.
The university, which is facing an acute financial crisis, has neither paid its workers nor its suppliers.
"Garissa University owes suppliers and service providers about Sh84 million,” a senior university official told Nation on Sunday.
“The suppliers have threatened not to offer any services until the debt is cleared," he added.
The institution is yet to receive Sh500 million grant from the government.
The money was meant for building a library, an administration block, a cafeteria, a laboratory and to hire more lecturers.
For the last five years, the institution has been receiving Sh224 million annually instead of Sh350 million.
The construction of a perimeter wall fence to boost security in the instruction has also stalled due to lack of funds.
The university, which has suffered the worst terror attack in the country four years ago, was awarded charter by President Uhuru Kenyatta in a move the Head of State said was to make the institution stronger.
Al-shabab militants raided the institution which was then constituent college of Moi University, killing 142 of its students and six security officers.
The Nation has also learnt that the university is struggling to pay lecturers and other staff. The lecturers and other university staff are paid Sh30 million annually in hardship allowance. The institution also spends Sh10 million annually on security.
When reached for comment the institution’s Vice-Chancellor Prof Ahmed Osman Warfa declined to comment on the matter.