Versities in 56bn Debt ; Top kenyan universities On Brink For Collapse 

Versities in 56bn Debt ; Top kenyan universities On Brink For Collapse

 

Public universities in Kenya are tittering on the brink of collapse, thanks to a debt burden running into a whopping KSh 56 billion.

Citizen TV reports that over 30 institutions of higher learning are hanging on an attenuate thread due to chocking debt.

According to thee Universities Fund Chief Executive Officer Geoffrey Monari, the learning institutions owe KSh 13.7 billion in Pay As You Earn (PAYE) remittances.

The same centers also have unpaid pension remittance to the Kenya Revenue Authority (KRA) amounting to KSh 18.5 billion.

Part time lecturers are owed KSh 4.5 billion as well as other government institutions like the National Hospital Insurance Fund (NHIF), which brings the total debt to KSh 56.1 billion.

“They should restructure the way they operate and stop the current bleeding of funds,” Monari advised.

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According to the breakdown, Jomo Kenyatta University of Agriculture and Technology is in KSh 12 billion debt, University of Nairobi KSh 11.2 billion while Egerton University owes KSh 8 billion.

Kenyatta University and Moi University have a debt burden of KSh 6.7 billion and KSh 6 billion respectively.

Monari added that Kenyatta University had a good idea to invest in a referra hospital, however, the facility was taken away which means the institution does not benefit from it.

The financial challenges have forced some universities to reduce staff salaries, something that led to industrial strikes.

In November 2021, the National Treasury revealed that the University of Nairobi (UoN) and Kenyatta University (KU) were in financial deficits running into billions.

The agency indicated that the University of Nairobi had a deficit of KSh 2.17 billion in the year ending June 2021, up from KSh 1.62 billion a year earlier.

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Kenyatta University on the other hand had a deficit of KSh 2.13 billion in the same period, up from KSh 1.3 billion reported during a similar period in 2020.

The combined deficit of the two institutions at the time was KSh 4.3 billion, shedding light on the deep financial difficulties higher learning institutions in Kenya were facing.

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