Kenya Methodist University board of trustees' chairman Silas Muriuki had said the institution will reclaim its assets after settling a Sh42 million debt.
Auctioneers took away property at the institution last week. Muriuki said people threatened by the university's existence are fuelling leadership wrangles.
Several vehicles were taken after more than 60 workers, who were sacked, moved to court. A bus and lorry were also attached.
"There were claims that KeMU will not open or will not admit students in September because it is being sold," Muriuki said.
He accused previous vice chancellors of paying workers high salaries compared to other universities.
"The institution could not afford to pay the allowances. The workforce was reduced as well as salaries and some people are unhappy," Muriuki said.
He said the debt was as a result of buying property at exaggerated prices.
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Retired presiding Bishop for the Methodist Church of Kenya, Lawi Imathiu, said people with grievances should follow the right channel.
"In the Methodist Church, we have leaders' meeting, quarterly meetings, the synod and conference. Anyone with an issue can air it at these meetings,” he said.
Imathiu spoke during the requiem mass for Reverend Julius Golicha who converted from Islam. He was buried at Isiolo Methodist Church.
Imathiu said Joseph Ntombura was properly elected as Methodist Church presiding bishop and should not quit.
Ntombura is also the KeMU chancellor.
Since it received a charter in 2006, three KeMU vice-chancellors have been removed controversially. They include Prof Mutuma Mugambi in 2010, Prof Alfred Mutema in 2015 and Prof Kiriamiti last year.
Earlier in the week, clergymen and the faithful said leadership wrangles might cause the institution's downfall.
They claimed Bishop Ntombura is holding the post illegally since a court ordered that he vacates the seat.