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Worry For University Workers As Institutions Withhold Ksh19 Billion In Statutory Deductions

[PHOTO/ COURTESY]

University workers could soon be unable to access some services after their employers failed to remit over Ksh19 billion statutory deductions to the relevant authorities.

Statutory deduction include the National Hospital Insurance Fund (NHIF), Pay As You Earn (PAYE), National Social Security Fund (NSSF), Higher Education Loans Board (Helb) and sacco deductions.

According to a report tabled in Parliament by the Budget and Appropriations Committee (BAC), the University of Nairobi has not remitted Ksh5.5 billion.  Jomo Kenyatta University of Agriculture Technology (JKUAT) and the Technical University of Kenya have not remitted Ksh3.5 billion each, while Kenyatta University has not remitted Ksh2.7 billion.

Egerton University has not remitted Ksh2 billion while Moi University has Ksh1.3 billion in unremitted statutory deductions.

Affected staffers might not get services such as NHIF coverage since they are in default, and those retiring might not get their retirement benefits.

Read Also: Court Okays Prof Mugenda’s Appointment As Chairperson KU Teaching And Referral Hospital Board

The Institutions of higher learning could lose property/assets if they do not have cash to clear the bills, that threaten their financial muscle.

Universities have been facing a reduced cash flow, that saw the University of Nairobi suspend travel allowances early this year.

In January,  Kenyatta University sought a Ksh450 million loan from local lenders that would be paid in 10 years.

The government has also shut down satellite campuses, something that has contributed to the institutions struggle to stay afloat.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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