Public universities debt requires urgent redress

The seizure last week by auctioneers of the assets belonging to the Technical University of Kenya (TUK) over a paltry Sh41 million debt it owes a lecturers’ union is not only shameful but also exposes the financial mess at the institutions of higher education.

The seizure of the institution’s property follows the University Academic Staff Union’s lawsuit against TUK, including Jomo Kenyatta University of Science and Technology, University of Nairobi, Kisii University, Egerton University, Moi University and Kenyatta University demanding Sh123 million in unremitted union dues.

The dispute between TUK and the union is the tip of the iceberg. According to a Universities Funding Board status report, the State-funded learning institutions owed Sh56.6 billion, mostly in unremitted statutory deductions and accumulated penalties as of April 2021.

Even though the institutions might be going through a rough patch given the dwindling student population and a change in government funding policy, they do not have a good reason for failing to remit statutory deductions from salaries.

The universities might have diverted the money collected into other use. This not only smacks of gross incompetence in the prudent use of financial resources but also reflects negligence on the part of university administrators.

The reforms at the institutions of higher learning are long overdue.

The universities will have to make painful decisions to stay afloat. Top on the agenda should be cost-cutting and proper management of finances.

Recently, the University of Nairobi announced radical changes to boost efficiency and service delivery while Moi University closed some of its campuses. We encourage other public universities to follow suit. However, the reforms should go beyond cosmetic changes with little impact.

The institutions should also avoid accumulating debt and make an effort to pay what they owe. Failure to settle the debts exposes the universities to costly litigations that could affect the optimal running of the institutions. It should not be business as usual at public universities.

If the institutions of higher learning cannot put their house in order, the Ministry of Education should intervene and rein in the accounting officers sleeping on the job.