MPs Probe Technical University of Kenya Leadership on Financial Crisis

The Technical University of Kenya is facing a financial crisis, with concerns over delayed salaries and unremitted statutory deductions. Vice Chancellor Prof. Benedict Mutua reported that faculty salaries have not been issued since 2013, causing backlog issues. The Education Committee emphasizes the need for reforms and explores options for a financial bailout if significant changes are made to reduce expenditure and enhance income.

The National Assembly Departmental Committee on Education has expressed significant concern regarding the ongoing financial crisis at the Technical University of Kenya (TU-K). This inquiry, led by Tinderet MP Julius Melly, included a visit to the university to evaluate its operational difficulties, focusing on the issues of delayed salaries, unremitted statutory deductions, and the pension scheme’s collapse.
During the session, Vice Chancellor Prof. Benedict Mutua disclosed that TU-K faculty members have not received their gross salaries since 2013, resulting in substantial backlogs for statutory deductions such as pensions, NSSF, and NHIF/SHIF. “Since 2013, no staff member has received their gross salary, so statutory deductions… have not been remitted,” he reported, highlighting the university’s financial distress.
Committee members raised further inquiries regarding the university’s pension scheme, with Vice-Chairperson Eve Obara and MP Nabii Nabwera questioning if an actuary was consulted in its establishment. Nabwera remarked, “Did you engage one to determine the best use of the scheme?” indicating adequate financial guidance was potentially lacking in the university’s operations.
Additionally, the committee voiced concerns over dwindling staff morale, particularly regarding the freezing of promotions. Prof. Mutua outlined that TU-K faces pending bills totaling Sh12.99 billion and has proposed a repayment strategy that extends until the 2031/2032 financial year in conjunction with the Ministry of Education. He emphasized, “My prayer to this Committee is that we help this university by bailing it out.”
Committee Chair Julius Melly stated that a bailout would only be feasible if the university undertook significant measures to reduce its wage bill and enhance income generation. Current enrollment at TU-K stands at 12,701 students; however, the numbers are decreasing despite favorable location and amenities. Member Clive Gisairo pointedly remarked, “Why do you have three infrastructure projects that have stalled?” noting that some expansion efforts have been halted for several years despite the university’s financial struggles.

In conclusion, the investigation into the Technical University of Kenya’s financial crisis reveals severe issues concerning delayed salaries, unremitted statutory deductions, and stalled infrastructure projects. The Vice Chancellor has proposed an extended repayment plan for the university’s debts, while the committee emphasizes the need for critical reforms and improved financial management to secure the institution’s future. The collaboration with the Ministry of Education is crucial to navigate these challenges effectively, while addressing staff morale remains imperative for a sustainable resolution.

Original Source: www.capitalfm.co.ke