The National Assembly’s Departmental Committee on Education has raised critical concerns over the financial crisis at the Technical University of Kenya, primarily regarding unpaid salaries and pension issues. The Vice Chancellor reported that staff have not received gross salaries since 2013, leading to a backlog of statutory deductions. The Committee is considering the university’s proposed repayment plan for its debts but emphasizes the need for structural changes before discussing potential bailouts.
The National Assembly Departmental Committee on Education has expressed significant concerns regarding the financial predicament at the Technical University of Kenya (TU-K). During a visit to assess operational difficulties, the committee, led by Tinderet MP Julius Melly, addressed issues such as delayed salaries and the failure to remit statutory deductions. The Vice Chancellor, Prof. Benedict Mutua, disclosed that staff had not received gross salaries since 2013, leading to a backlog of unpaid statutory deductions.
Members of the Committee, including Vice-Chairperson Eve Obara and MP Nabii Nabwera, questioned the establishment of the university’s pension scheme, specifically inquiring about the involvement of an actuary in its creation. The Committee also raised concerns over low staff morale and the postponement of promotions, highlighting the adverse effects of these financial challenges on the university community.
Prof. Mutua explained that TU-K is currently burdened with pending bills totaling Sh12.99 billion, and has proposed a repayment plan extending to the financial year 2031/2032 with the assistance of the Ministry of Education. He appealed to the Committee for support in securing a bailout for the university.
However, Chairman Julius Melly cautioned that a bailout would only be viable if the university implements significant changes to lower its wage bill and boost revenue generation. Furthermore, the Committee noted that TU-K, despite its urban location and established infrastructure, is experiencing a decline in student enrollment. MP Clive Gisairo raised concerns about suspended infrastructure projects, questioning the university’s capacity to manage multiple initiatives simultaneously.
In summary, the Technical University of Kenya faces serious financial challenges, exacerbated by delayed salary payments and issues surrounding its pension scheme. The leadership’s appeal for assistance has been met with caution from the Education Committee, emphasizing the necessity of organizational reforms before any financial bailouts are considered. Additionally, dwindling student enrollment and stalled infrastructure projects highlight the need for more strategic management and planning to secure the university’s future.
Original Source: www.capitalfm.co.ke
