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KU, UoN and Multimedia Universities In Debt Crisis, Auditor General Reveals

Universities
/Courtesy

The auditor general has said Kenyatta University, University of Nairobi and Multimedia university are insolvent running on bank overdrafts even to an extent of failing to remit statutory deductions including loans.

He said that the failure to remit has resulted in individual employees being penalized for defaulting.The employees may also be denied services by the NHIF due to the payments owed to them.

Kenyatta University reported the highest debt at Sh3.4 billion, followed by UoN at Sh1.4 billion and Multimedia at Sh700 million as at June 2018.

The University of Nairobi failed to remit PAYE of Sh283 million, National Social Security Fund deductions of Sh3.4 million, National Hospital Insurance Fund deductions of Sh10.8 million, Sh1.5 billion, sacco deductions of Sh204 million and Helb deductions of Sh828,387.

“Therefore, the university is technically insolvent and if no urgent positive steps are taken to improve the position, it may not meet its mandate in future,” the auditor general warned

Read:UoN Taken To Court Over Ksh237 Million Owed To Surveyor

The auditor genera said that the universities current liabilities exceed the assets.

“This indicates that the university was unable to meet its financial obligations when they fall due,” Ouko said.

Education CS said that the the government was not going to give money to the universities instead propsed an increase in the school fees and also merging of some of the universities and faculties to free funds and reduce costs by reducing staff.

The universities have blamed their financial strain on the governments bid to reduce the entry level cut off point to C- therefore reducing the self sponsored students who have been the cash cows.

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Written by Merxcine Cush

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