Kenya’s public universities are grappling with a mounting debt crisis, with total liabilities surging to Sh76.1 billion by June 2024.
This marks a 10.4 percent increase from Sh68.9 billion recorded the previous year, according to the latest report by Auditor General Nancy Gathungu. The steady rise in debt over the past four years has raised alarm over the financial sustainability of these institutions and their ability to meet operational and statutory obligations.
The audit, which covered 42 public universities, revealed that Sh10.96 billion of the total debt is long-term, while Sh68.4 billion comprises current liabilities. Gathungu noted that the consistent growth in current liabilities indicates a systemic failure to meet short-term financial commitments, including trade payables, statutory deductions, and other operational expenses. She warned that this trend threatens the continuity of academic and administrative services across the country’s higher education sector.
The audit also revealed that 17 universities had failed to remit statutory deductions amounting to Sh29.6 billion. These included unpaid Pay As You Earn (PAYE) taxes, pension contributions, withholding taxes, and other payroll-related obligations.
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In addition, 13 universities were found to have overdue payments totalling Sh8.5 billion, owed to vendors, part-time lecturers, contractors, and staff. Some of these debts date back as far as 2008, underscoring long-standing financial mismanagement.
Beyond liabilities, the audit revealed that six universities operated on deficits totalling Sh3.2 billion, meaning they spent more than they earned during the financial year. Moi University recorded the highest deficit at Sh1.2 billion, followed by Jomo Kenyatta University of Agriculture and Technology (Sh916.7 million), Technical University of Kenya (Sh877.97 million), Technical University of Mombasa (Sh141 million), University of Eldoret (Sh57.7 million), and University of Kabianga (Sh4.7 million). Gathungu observed that these shortfalls reflect ongoing financial strain and point to structural weaknesses in revenue generation and expenditure management.
The Auditor General has called for urgent reforms in fiscal oversight and accountability to safeguard the future of higher education in Kenya.
By Masaki Enock
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