This archive report was first published on 14 July 2021.
The University of Nairobi, Kenya's premier higher learning institution, is grappling with a severe financial crisis. As of now, the university owes the Kenya Revenue Authority a staggering Sh. 7.2 billion.
According to reports, the university has been struggling to honor remittances on employee retirement benefits, insurance premiums, and payroll taxes. This has put the institution at risk of asset seizures, collection of duty directly from suppliers, and bank accounts holding student fees, as well as prosecution of its top officials.
Speaking on the matter, the university's vice chancellor, Professor Stephen Kiama, attributed the crisis to the institution's failure to cost its services effectively. 'The UoN has been operating under a huge deficit, and today we owe KRA Sh. 7.2 billion, which has come as a result of us not costing our services,' he said.
The university's financial woes began in June 2018, when it made a loss of Sh. 1.4 billion. The Office of the Auditor General revealed that the university had overshot its budget and failed to realize projected revenue.
Notably, the university has recently announced a fee hike for various courses, with some programs seeing an increase of up to 118 percent. For instance, the two-year MBA course will now cost Sh. 602,000, up from Sh. 280,000, excluding project fees. The MA in Communication fees have also increased to Sh. 655,000, up from Sh. 273,000.
Students pursuing medicine at UoN will part with Sh. 3.8 million for the five-year course, up from Sh. 2.35 million. Law students will pay Sh. 1,020,000, up from Sh. 715,500, while engineering courses will average Sh. 2.1 million, up from Sh. 1 million.
