The National Assembly Education Committee raised concerns over the financial crisis at the Technical University of Kenya (TU-K) regarding delayed salaries, unremitted deductions, and pension issues. Vice Chancellor Prof. Mutua revealed staff have not received gross salaries since 2013. With pending debts of Sh12.99 billion, the university has proposed a repayment plan until 2031/2032. Staff morale and ongoing infrastructure projects were also discussed.
The National Assembly Departmental Committee on Education expressed significant concerns regarding the financial crisis at the Technical University of Kenya (TU-K). During a visit led by Tinderet MP Julius Melly, they questioned the university’s leadership about delayed salaries, unremitted statutory deductions, and the impending collapse of its pension scheme.
Vice Chancellor Prof. Benedict Mutua disclosed alarming information that TU-K staff had not received their gross salaries since 2013, leading to a backlog in statutory deductions. “Since 2013, no staff member has received their gross salary, so statutory deductions, including pensions, NSSF, and NHIF/SHIF, have not been remitted,” he stated.
Committee members, including Vice-Chairperson Eve Obara and Nabii Nabwera, raised the issue of whether an actuary had been consulted when establishing the pension scheme. Nabwera specifically inquired about the evaluation process regarding the scheme’s establishment.
Concerns regarding staff morale were also highlighted, particularly with the university’s decision to freeze promotions. Prof. Mutua explained that the university faces pending bills totaling Sh12.99 billion, for which a repayment plan has been proposed through to the 2031/2032 financial year, in collaboration with the Ministry of Education.
He emphasized the need for assistance, stating, “My prayer to this Committee is that we help this university by bailing it out.” The committee’s chair, Julius Melly, responded that a bailout would not be practical unless the university implements significant changes to reduce its wage bill and enhance income generation.
Currently, TU-K has an enrollment of 12,701 students, although numbers are declining. Clive Gisairo raised concerns about the stalled infrastructure projects, questioning why the university is pursuing more projects while facing financial difficulties.
The situation at TU-K illustrates the urgent need for effective financial management and strategic planning to ensure the viability of the institution and the welfare of its staff and students.
In summary, the Technical University of Kenya is experiencing a critical financial crisis, marked by unresolved salary issues and mounting debts. The leadership is under scrutiny by the National Assembly Committee, with significant concerns raised about the management of institutional resources, particularly regarding pension plans and stalled infrastructure projects. Moving forward, a comprehensive strategy is imperative to stabilize the university’s financial standing and improve staff morale.
Original Source: www.capitalfm.co.ke
