Concerns Raised by MPs Regarding Financial Crisis at Technical University of Kenya

The National Assembly Committee on Education expressed deep concerns over the Technical University of Kenya’s financial crisis, particularly regarding unpaid salaries, pension issues, and the impact on staff morale. Vice Chancellor Prof. Mutua revealed that gross salaries have not been paid since 2013, leading to unremitted statutory deductions. The committee called for significant reforms to enable a potential bailout.

The National Assembly Departmental Committee on Education expressed significant concern regarding the financial crisis at the Technical University of Kenya (TU-K). The committee scrutinized the university’s leadership during a visit aimed at understanding operational difficulties due to financial hardships, which prominently include delayed salary payments and unremitted statutory deductions.

Led by Tinderet MP Julius Melly, the committee was particularly troubled by Vice Chancellor Prof. Benedict Mutua’s disclosure that TU-K staff had not received their gross salaries since 2013. This situation has resulted in a failure to remit statutory deductions such as pensions and National Social Security Fund (NSSF) contributions. The Vice Chancellor lamented, “Since 2013, no staff member has received their gross salary, so statutory deductions… have not been remitted. In January and February 2025, we managed to pay net salaries, not gross salaries.”

Concerns were also raised regarding the university’s pension scheme, with Committee Vice-Chairperson Eve Obara and MP Nabii Nabwera questioning if an actuary evaluated the scheme’s establishment. Nabwera specifically asked about the engagement of an actuary to assess the scheme’s viability before its inception.

The committee expressed worries about staff morale, particularly due to the university’s freezing of promotions, prompting Narok County Woman Representative Rebecca Tonkei to probe into the rationale behind such a decision. The Vice Chancellor indicated that TU-K is facing an overwhelming debt of Sh12.99 billion and has proposed a repayment plan extending until the 2031/2032 financial year in cooperation with the Ministry of Education.

Moreover, Prof. Mutua appealed for assistance, stating, “My prayer to this Committee is that we help this university by bailing it out.” However, Committee Chair Julius Melly clarified that a bailout would not materialize without significant reforms to reduce the wage bill and increase revenue generation.

The Education Committee observed that TU-K has an enrollment of 12,701 students, but numbers are declining despite the institution’s central location and quality facilities. MP Clive Gisairo raised the issue of stalled infrastructure projects, remarking, “Why do you have three infrastructure projects that have stalled? For a struggling institution, why are you taking on more than you can handle?” This highlights a critical need for TU-K to reassess its operational priorities amidst its financial crisis.

The investigation by the National Assembly Departmental Committee into TU-K’s financial troubles has unveiled critical issues such as unpaid salaries, pension remittance failures, and stalled infrastructure projects. The leadership at TU-K, represented by Vice Chancellor Prof. Mutua, is tasked with addressing substantial debts while facing questions regarding staff morale and the management of the pension scheme. The necessity for drastic changes and a viable repayment strategy is imperative for the university’s recovery and sustainability.

Original Source: www.capitalfm.co.ke