TUK Declared Financially Broke as Parliament Orders Forensic Audit into Sh12 Billion Debt

The Technical University of Kenya (TUK) has been declared financially broke by the National Assembly, following explosive revelations of long-standing financial mismanagement and a ballooning debt of over Sh12 billion.

In a heated session held by the Public Investments Committee on Governance and Education, lawmakers heard that no TUK staff member has received a full salary since 2013, the same year the institution was granted full university status.

“Since 2013, to tell the truth, no TUK employee has received a full salary,” admitted TUK Deputy Vice Chancellor Benedict Mutua.

Parliament has now directed the Auditor General to carry out a comprehensive forensic audit of the university’s finances going back to 2013. The report is expected within three months.

“There is more than meets the eye. The committee directs that a forensic audit be carried out within three months, starting from 2013,” said committee chairperson and Bumula MP Wanami Wamboka.

The audit comes amid a deepening crisis that includes unpaid staff salaries, unremitted statutory deductions, and a collapsed pension scheme. More than Sh5 billion earmarked for pensions remains unaccounted for.

Mutua revealed that the university faces a staggering monthly wage bill of Sh270 million, while it receives just Sh63 million from the government each month.

“Our biggest challenge is having too many staff. The government gives us Sh63 million monthly, but we need Sh270 million to cover salaries,” he said. “We are reviewing the teacher-student ratio and undertaking staff rationalisation.”

Former Vice Chancellor Francis Oduol blamed the crisis on systemic underfunding and the differentiated unit cost (DUC) model used by the government. However, Wamboka rejected that explanation, pointing out that the DUC model applies uniformly across all 66 public universities.

“If it’s about the model, then all institutions would be in crisis. It cannot be the only reason,” Wamboka noted.

Former Deputy Vice Chancellor Francis Oduor further conceded the university had not remitted deductions since becoming a chartered institution. “To be honest, we haven’t paid any,” he said.

The committee has summoned the Ministry of Education and the university’s leadership to chart a way forward and avert a total collapse of the institution.

“We will issue directives on how the university should be run after a meeting with the Ministry of Education. There is no academic excellence at TUK given the current state of affairs,” said Wamboka.

According to the latest report from the Auditor General, TUK is one of 23 public universities flagged for serious financial instability. As of June 30, 2024, the university’s unpaid bills stood at Sh11 billion.

The crisis threatens to bring the university’s operations to a standstill unless urgent reforms are implemented.

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TUK Declared Financially Broke as Parliament Orders Forensic Audit into Sh12 Billion Debt