Public Universities Drowning In Ksh.62B Debt – Report
Public universities are increasingly burdened by mounting debt, as their outstanding bills have escalated to Ksh.62 billion, as indicated by the most recent National Government Budget Implementation Review Report.
During the initial half of the fiscal year 2023/24, the analysis revealed that around 42 higher education institutions have been struggling with an increasing debt, which rose from Ksh.60 billion since last September.
Examining the figures more closely reveals that Kenyatta University is at the forefront, with outstanding bills amounting to Ksh.11.7 billion. Following closely is the Technical University of Kenya with Ksh.8.2 billion, and Jomo Kenyatta University of Agriculture and Technology (JKUAT) with Ksh.8.1 billion.
As per the report, Egerton University has a debt of Ksh.7.8 billion, while Moi University’s outstanding amount is Ksh.7.5 billion.
Since the onset of the COVID-19 pandemic in 2020, schools and public universities have struggled to bounce back, with numerous institutions facing the risk of imminent failure.
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The escalating debt has worsened an already critical situation for universities that are struggling to meet their obligations to the Kenya Revenue Authority (KRA), Pay As You Earn (PAYE), and employee pension plans.
They have closed numerous campuses and failed to meet their legal obligations and payments to contractors as a result.
In September of the previous year, the Ministry of Education collaborated with the Treasury to explore options for relieving a portion of the debt that public universities owed to the Kenya Revenue Authority (KRA).
Additionally, the Controller of Budget’s report mentioned several other ministries with outstanding bills. Roads and Transport were reported to owe Ksh.178 billion, followed by Energy with Ksh.87 billion, Education (including universities) with Ksh.62 billion, and Agriculture with Ksh.35 billion.
As of December 2023, the cumulative amount of unpaid bills from Semi-Autonomous Government Agencies is Ksh.447.3 billion.
Public Universities Drowning In Ksh.62B Debt – Report