The National Assembly’s Education Committee has raised significant issues regarding the Technical University of Kenya’s financial crisis. Key concerns include the non-payment of gross salaries since 2013, unremitted statutory deductions, and a proposed repayment plan for Sh12.99 billion in debt. Leadership accountability and the moral impact on staff were also contentious points during the session.
The National Assembly Departmental Committee on Education has expressed significant concerns regarding the financial crisis at the Technical University of Kenya (TU-K), scrutinizing the leadership over delayed salaries and the unremitted statutory deductions. This inquiry was led by Tinderet MP Julius Melly, who conducted a visit to assess the operational troubles faced by the institution amid reports of distress.
During the visit, Vice Chancellor Prof. Benedict Mutua revealed that no staff member has received their gross salary since 2013, leading to an accumulation of unremitted 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,” stated Prof. Mutua.
The Committee’s Vice-Chairperson Eve Obara and member Nabii Nabwera inquired whether an actuary was consulted for the university’s pension scheme. Nabwera specifically emphasized the importance of an actuary’s assessment when establishing a pension plan.
Concerns were also raised regarding the morale of the faculty, with Rebecca Tonkei questioning the rationale behind the university’s freeze on promotions. Prof. Mutua shared that TU-K is facing debts totaling Sh12.99 billion and proposed a repayment plan in partnership with the Ministry of Education, extending to the 2031/2032 financial year.
However, Committee Chair Julius Melly remarked that a bailout would not be a viable solution unless drastic measures are taken to reduce the wage bill and enhance income generation. The Committee learned that TU-K has an enrollment of 12,701 students, although it has dwindled recently despite its advantageous location and facilities. MP Clive Gisairo pointed out that the university is burdened with multiple stalled infrastructure projects, questioning why it persists in undertaking more than it can effectively manage.
In summary, the inquiry into the financial crisis at the Technical University of Kenya highlights critical issues surrounding leadership accountability, staff welfare, and overall operational sustainability. The university’s failure to remit statutory deductions and ongoing salary delays have raised alarm among Members of Parliament. As the university seeks to formulate a repayment strategy for its debts, the Committee underscores the need for effective reforms to enhance financial stability and institutional credibility.
Original Source: www.capitalfm.co.ke
