The National Assembly Committee on Education scrutinized the Technical University of Kenya’s financial crisis, focusing on unpaid salaries and pension issues. Vice Chancellor Prof. Mutua reported no gross salary payments since 2013. The committee questioned the management’s actions concerning a pension scheme and faculty morale due to promotion freezes. A repayment plan for the institution’s substantial debts is proposed, yet a bailout is conditional on necessary reforms.
The National Assembly Departmental Committee on Education has expressed significant concerns regarding the financial instability at the Technical University of Kenya (TU-K). The Committee, under the leadership of Tinderet MP Julius Melly, convened at the institution to discuss operational difficulties, focusing on issues such as unpaid salaries and unremitted statutory deductions, along with the failure of the pension scheme.
During the inquiry, Vice Chancellor Prof. Benedict Mutua disclosed troubling information, indicating that university staff had not received gross salaries since 2013, leading to unremitted statutory deductions including pensions and health insurance. He asserted, “Since 2013, no staff member has received their gross salary; in January and February 2025, we managed to pay net salaries, not gross salaries.”
Committee members, including Vice-Chairperson Eve Obara and Nabii Nabwera, raised inquiries regarding the pension scheme, specifically if an actuary was consulted during its inception. Nabwera questioned the necessity of evaluating the scheme to ensure its appropriateness for the institution’s needs.
Concerns regarding staff morale were also addressed, particularly about the decision to freeze promotions, prompting Rebecca Tonkei to voice her apprehension about the impact on staff motivation. Prof. Mutua further explained that TU-K is facing outstanding debts totaling Sh12.99 billion and proposed a repayment plan in conjunction with the Ministry of Education.
The issue of a potential bailout was brought up by Committee Chair Julius Melly, who indicated that such financial assistance would only be viable if the university implemented substantial reforms to curtail its wage expenses and increase revenue. Despite having 12,701 students enrolled, the university faces declining enrollment, raising questions about its financial management and infrastructure projects, with Clive Gisairo highlighting stalled initiatives, particularly in construction.
The investigation by the National Assembly Committee reveals a pressing financial crisis at the Technical University of Kenya, marked by unpaid salaries and an ineffective pension scheme. With outstanding debts and dwindling student enrollment, the university’s leadership is urged to implement reforms. The possibility of a bailout remains uncertain, contingent on substantial changes within the institution to enhance fiscal stability and student engagement.
Original Source: www.capitalfm.co.ke
