This archive report was first published on 2 October 2019.
On October 2, 2019, Kenya Revenue Authority (KRA) raided Egerton University, sparking panic in public universities over failure to remit Pay As You Earn and other statutory deductions.
According to KRA, Egerton University's bank accounts were closed, disrupting the institution's operations.
Out of 10 universities with outstanding PAYE remittances amounting to Sh2.63 billion, Kenyatta University is the biggest defaulter with Sh902.6 million, followed by the University of Nairobi with Sh704.6 million, and Technical University of Kenya with Sh634.3 million.
The worst offenders in the remittance of pensions are the University of Nairobi at Sh1.35 billion, Jomo Kenyatta University of Agriculture and Technology with Sh1.1 billion, and Technical University of Kenya at Sh946 million.
The KRA raid on Egerton University comes after a damning audit report revealed that public universities are deducting billions of shillings from their employees' salaries but not remitting the money to relevant agencies.
Universities are making deductions for National Hospital Insurance Fund (NHIF), bank and Sacco loans and savings, retirement savings, and Pay As You Earn but not remitting them.
Remittance of statutory, loan, and members' deductions to Saccos and banks is a mandatory employer obligation.
However, the audit report indicates that some universities have failed to comply with the law on these remittances, meaning they are either illegally holding or spending the money they deduct from their staff.
