The Education Committee has raised alarm over TU-K’s financial crisis, involving unpaid salaries and pension scheme failures. Vice Chancellor outlined debts and proposed a long-term repayment plan. Concerns were noted about staff morale and stalled infrastructure projects, with calls for drastic institutional reforms or a feasible bailout.
The National Assembly Departmental Committee on Education has expressed severe concerns regarding the financial crisis at the Technical University of Kenya (TU-K). During a visit led by Tinderet MP Julius Melly, questions were raised about the leadership’s handling of delayed salaries, unremitted statutory deductions, and the pension scheme’s failure.
Vice Chancellor Prof. Benedict Mutua disclosed that staff at TU-K have not received gross salaries since 2013, leading to significant financial backlogs in statutory deductions for pensions and mandatory contributions. “Since 2013, no staff member has received their gross salary, so statutory deductions, including pensions, NSSF, and NHIF/SHIF, have not been remitted,” stated Prof. Mutua.
Committee members, including Vice-Chairperson Eve Obara and Nabii Nabwera, inquired if an actuary was consulted while implementing the university’s pension scheme, emphasizing the importance of expert evaluations for such critical financial decisions. Furthermore, there was concern over staff morale due to the university’s decision to freeze promotions.
Prof. Mutua noted that TU-K is facing outstanding debts totaling Sh12.99 billion, for which a repayment plan up to the 2031/2032 financial year has been proposed in collaboration with the Ministry of Education. He appealed to the Committee for assistance: “My prayer to this Committee is that we help this university by bailing it out.”
Committee Chair Julius Melly remarked that a bailout is unrealistic without significant reforms to reduce costs and enhance revenue generation. Additionally, the Committee reviewed enrollment statistics, which show that TU-K has 12,701 students, a number declining despite the university’s advantageous location and infrastructure.
Clive Gisairo highlighted the issue of stalled infrastructure projects within the university, questioning why TU-K continues to initiate projects that are beyond its fiscal capabilities. He noted, “Why do you have three infrastructure projects that have stalled? For a struggling institution, why are you taking on more than you can handle?”
The examination by the National Assembly’s Education Committee has highlighted critical issues facing the Technical University of Kenya, including unpaid salaries, inadequate statutory deductions, and financial mismanagement. The university leadership is pressed to address these challenges to improve staff morale and attract student enrollment while restructuring its financial responsibilities preventing further deterioration of its operational status.
Original Source: www.capitalfm.co.ke
