Education Cabinet Secretary Julius Ogamba was yesterday grilled by the National Assembly Education Committee on the financial mess at University of Nairobi (UoN) and Technical University of Kenya (TUK).
The institutions are grappling with huge bills, UoN owes Sh13.6 billion and TUK Sh12.9 billion. Lawmakers demanded a clear recovery plan, saying both universities are on the verge of collapse.
UoN Debts Breakdown
Documents presented to the Julius Melly-led committee showed that UoN’s debts include:
- Sh4.07 billion to KRA.
- Sh7.78 billion in unpaid pension contributions.
- Sh194.2 million to general suppliers.
- Sh351.8 million Absa loan.
- Sh719.9 million to direct service providers.
- Unpaid staff welfare, medical refunds, statutory deductions and obligations to KUCCPS and CUE.
Lawmakers also raised concern on leadership wrangles at UoN which have stalled operations since 2021 reforms to restructure governance.
TUK Financial Woes
At TUK, the Sh12.9 billion debt includes:
- Sh4.385 billion in unpaid pension funds.
- Sh6.7 billion in unremitted statutory deductions.
- Sh305.87 million to banks, SACCOs and insurers.
- Sh761.08 million in Cooperative Bank arrears.
- Sh398.8 million in staff claims.
Also, the committee was shocked to learn that TUK pensioners lost Sh5 billion after the university’s pension scheme was irregularly wound up. MPs asked what action has been taken against those responsible.
CS Ogamba’s Response
CS Ogamba acknowledged the crisis and listed long term commitments of Sh12.9 billion which will be paid between 2025 and 2032.To address TUK’s pension crisis, the university has asked RBA to approve the establishment of new retirement benefits scheme in consultation with workers’ unions (UASU, KUDHEIHA, and KUSU).
For UoN, the ministry is implementing fiscal discipline, increased government engagement, alumni involvement and research partnerships to clear debts.
On governance, Ogamba hinted that the ministry will contest the court ruling that reinstated UoN Council Chairman Amukowa Anangwe. Public universities are working with PSC to develop standardized human resource policies.
Next Step
Parliament will demand accountability from those responsible for the mess. Both universities must cut costs and generate revenue to prevent further decay.
