A Ks1.3 billion debt is threatening to sink academic giants Kenyatta University (KU), Auditor-General Nancy Gathungu has said.
In her revelations in her latest report, Gathungu says that the university is relying on short-term loans to stay afloat, which are extremely costly.
“The university is therefore, technically insolvent and if no urgent positive measures are taken to improve the financial position, it may not be able to meet its mandate in future,” said Ms Gathungu.
In the year to June 2019, KU’s deficit stood at Ksh677 million, reducing accumulated surplus from Ksh5.84 billion in 2019 to Ksh4.5 billion.
Read: Jaramogi Oginga Odinga University Appointment Of DVC Allegedly Bungled In Favour Of Luo Candidate
Also, the University’s liabilities stood at Ksh6.38 billion as of June 2020, putting it on the red against an asset base of Ksh1.58 billion.
“Further, the current liabilities of Ksh6.38 billion as at June 30, 2020, exceeded the current assets of Ksh1.58 billion resulting in a negative working capital of Ksh4.8 billion,” Ms Gathungu told MPs.
As a result, the institution which for long has been perceived as an academic giant is unable to remit pensions and taxes amounting to Ksh3.67 billion, audit fees of Ksh8.1 million and other deductions worth Ksh342.9 million.
Email your news TIPS to email@example.com or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu