University of Nairobi sinks into debts amounting to Sh12 billion

University of Nairobi sinks into debts amounting to Sh12 billion

The University of Nairobi is currently grappling with a financial crisis, with debts surpassing Ksh. 12 billion, primarily due to inadequate funding from the Ministry of Education.

Tensions between the acting vice chancellor and the university council have exacerbated the situation. The vice chancellor has expressed concerns that the council is making significant decisions, including staff terminations, without his involvement.

On Tuesday, the Parliamentary Education Committee visited the university to investigate the underlying causes of its financial and management issues.

During the visit, the university’s management, led by Acting Deputy Vice-Chancellor Margaret Jesang Hutchinson, detailed the factors contributing to the institution’s difficulties. The debts, which exceed Ksh. 12 billion, include Ksh. 7.8 billion in pension arrears and Ksh. 4 billion owed to the Kenya Revenue Authority (KRA).

“We owe Ksh. 194 million to suppliers and Ksh. 315 million to ABSA Bank, with other debts continuing to accumulate,” stated Acting Deputy Vice-Chancellor Hutchinson.

The university is relying on external assistance to remain operational and requires Ksh. 800 million each month to meet payroll obligations. Meanwhile, the Kisumu and Mombasa campuses are inactive due to a significant drop in student enrollment, with some areas of the campuses being leased to businesses.

“Our monthly payroll is Ksh. 800 million, but the government only allocates Ksh. 100 million. We have no students enrolled in Mombasa and Kisumu,” Hutchinson explained.

Members of Parliament were informed that the acting vice chancellor has been left out of critical decisions made by the university council, including staff suspensions, such as that of Professor Maloba.

“Was the decision to suspend lecturers, including the recent suspension of Prof. Maloba, made by the council?” asked Narok MP Rebecca Tonkei.

Acting Deputy Vice-Chancellor Hutchinson replied, “I don’t know. I have sought clarification from the council, but they have not yet responded.”

The university’s management also disclosed that between 14 and 20 senior management positions were created unlawfully, and the institution lacks essential documentation for those appointed to these roles. The head of the university’s legal department is now under scrutiny for not providing these crucial records.

“I can’t comment on their academic documents—they’re not relevant, and we don’t have them in our records,” said university lawyer Fredrick Collins Omondi.

The parliamentary committee recognized the severity of the university’s situation, with chairperson Julius Meli stating, “It’s evident that the university is facing serious challenges, from recruitment issues to escalating debts. Immediate action is required.”