University of Nairobi, KU losses hit Sh4.3 billion
What you need to know:
- The Treasury revealed to Parliament last week that UoN had a deficit of Sh2.17 billion in the year to June, up from Sh1.62 billion a year earlier.
- KU’s deficit dipped to Sh2.13 billion in the period under review.
The University of Nairobi (UoN) and Kenyatta University have dipped into a combined Sh4.3 billion financial deficit, underlining the cash flow problems at the institutions that has seen them seek to raise student fees.
The Treasury revealed to Parliament last week that UoN had a deficit of Sh2.17 billion in the year to June, up from Sh1.62 billion a year earlier.
KU’s deficit dipped to Sh2.13 billion in the period under review from Sh1.3 billion with the institution relying on short-term loans to finance its operations.
The latest disclosure reveals the deep financial difficulties facing the country's institutions of higher learning.
Public universities have found themselves in deep financial straits blamed on falling student population, mismanagement and low State funding. In recent months, a number of universities have had to scrap some courses and close satellite campuses to cut cost of operations.
They have been unable to remit statutory deductions like pensions and tax, prompting warnings from the Kenya Revenue Authority amid fears of asset seizures.
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