University of Nairobi tells MPs its debt has reached KSh 20 billion
Vice-Chancellor Ayub Gitau told a parliamentary committee that UoN owes about KSh 20 billion, though its assets are worth over KSh 220 billion. MPs want a recovery plan with clear targets by December 1, 2026.
The University of Nairobi (UoN) has told Parliament that its outstanding debt stands at about KSh 20 billion, Pulse Live Kenya reported. Vice-Chancellor Professor Ayub Gitau gave the figure to the National Assembly's Public Investments Committee on Governance and Education. The committee is examining whether the university can meet its obligations. The university reports assets worth more than KSh 220 billion. Lawmakers asked why an institution with such valuable property is struggling to pay creditors. Owning property does not mean having the cash to pay salaries, suppliers and pension contributions when they fall due. Management partly blamed a cut in government funding. The cut followed the introduction of the Differentiated Unit Cost (DUC) model in the 2017/2018 financial year. DUC sets funding based on student numbers, courses offered, staff costs, infrastructure and the cost of running programmes. Acting Director of Finance Stephen Kimeli told MPs that the switch left a capitation gap of about KSh 1.6 billion. The university said this hurt operations as payroll costs kept rising. MPs also raised concerns about unpaid pension contributions and other statutory obligations. When pension deductions are remitted late, staff do not receive the money…
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