This archive report was first published on 27 August 2019.
Kenya's public universities are struggling with a severe cash crisis, with six institutions at risk of losing prime properties due to un-remitted retirement deductions.
According to the Retirement Benefits Authority (RBA), the affected universities, including the University of Nairobi and Jomo Kenyatta University of Science and Technology (JKUAT), have agreed to cede ownership of some of their buildings to clear the arrears estimated at Sh8.4 billion.
Retirement Benefits Authority CEO Nzomo Mutuku stated that vice-chancellors of the affected universities have agreed to transfer non-core assets, such as buildings, to the pension schemes to address the liquidity challenges.
Education Secretary George Magoha had previously ruled out Treasury funds to help the institutions clear the debts, leaving the universities with a six-year window to clear the arrears, the maximum period allowed in law.
The cash crunch at the universities is attributed to a dip in parallel degree admissions, which has been one of their biggest revenue streams since 2016. The introduction of funding based on courses offered since 2017 has further hit the universities' coffers, in addition to a high wage bill.
