This archive report was first published on 30 September 2019.
Kenya's second-largest higher institution of learning, Kenyatta University, is facing a severe financial crisis, largely attributed to poor management decisions and weak internal structures.
The university's troubles began during the tenure of former Vice Chancellor Olive Mugenda, who retired in 2016. Her successor, Paul Wainaina, took over as Vice Chancellor on January 26, 2018, for a five-year term.
Under Wainaina's leadership, the university has faced numerous challenges, including a plagiarism scandal that led to the recall of a PhD academic paper. The situation has become so dire that Kenyatta University is now technically insolvent, with a debt of Sh3.4 billion, according to the latest Auditor General's report.
The report also revealed that the university has failed to remit statutory deductions, including Paye, National Social Security Fund, and National Hospital Insurance Fund, resulting in potential financial penalties for employees.
Kenya's second-largest higher institution of learning, Kenyatta University, is facing a severe financial crisis, largely attributed to poor management decisions and weak internal structures.
Published on September 30, 2019, the Auditor General's report highlighted the university's liquidity problems, with a deficit of Sh2.1 billion in 2018 and current liabilities exceeding its Sh847 million current assets, resulting in a negative working capital of Sh3.5 billion.
“This indicates that the university was unable to meet its financial obligations when they fall due,” the report stated.
Kenya's second-largest higher institution of learning, Kenyatta University, is facing a severe financial crisis, largely attributed to poor management decisions and weak internal structures.
According to the report, the university has failed to submit pension contributions, Sacco deductions, and Helb deductions, further exacerbating its financial woes.
Kenya's second-largest higher institution of learning, Kenyatta University, is facing a severe financial crisis, largely attributed to poor management decisions and weak internal structures.
One of the reasons for the university's financial struggles is the loss of billions of shillings due to poor management decisions. For instance, the university lost Sh518 million spent on setting up Kigali and Arusha campuses after the Rwandan and Tanzanian governments shut them down.
Kenya's second-largest higher institution of learning, Kenyatta University, is facing a severe financial crisis, largely attributed to poor management decisions and weak internal structures.
The university has also been criticized for its lack of diversity in its employees, with one ethnic community, the Kikuyus, controlling 45% of senior management, 39% academic staff, and 42% non-teaching staff.
Published on September 30, 2019, the Auditor General's report highlighted the university's liquidity problems, with a deficit of Sh2.1 billion in 2018 and current liabilities exceeding its Sh847 million current assets, resulting in a negative working capital of Sh3.5 billion.
