Wednesday, 19 March, 2025
Education Committee questions Technical University of Kenya management over pending bills, delayed salaries and staff welfare๐๐๐๐ก๐ง๐ข๐๐๐ฅ ๐๐ง๐ข๐ฏ๐๐ซ๐ฌ๐ข๐ญ๐ฒ ๐จ๐ ๐๐๐ง๐ฒ๐, ๐๐๐ข๐ซ๐จ๐๐ข ๐๐จ๐ฎ๐ง๐ญ๐ฒ ๐๐ฎ๐๐ฌ๐๐๐ฒ, ๐๐๐ซ๐๐ก ๐๐๐ญ๐ก ๐๐๐๐
Members of Parliament have raised serious concerns over the financial crisis at the Technical University of Kenya (TU-K), questioning the institutionโs leadership on delayed salaries, unremitted statutory deductions, and the collapse of its pension scheme.
The National Assembly Departmental Committee on Education, led by Chairperson, Hon. Julius Melly visited the University to assess its operational challenges amid reports of financial distress.
During the session, Committee Members expressed dismay over submissions by the Vice Chancellor, Prof. Benedict Mutua that TU-K staff had not received their gross salaries since 2013, leading to a backlog of unremitted deductions to pension schemes, PAYE, Pensions, NHIF/SHIF, NSSF, and Affordable Housing Levy.
"Since 2013 no staff has received their gross salary so statutory deductions including pensions, NSSF, NHIF/SHIF have not been remitted. In January and February 2025 we managed to have paid net salaries not gross salaries," stated the Vice Chancellor.
"Are you confirming that this institution does not have an organogram? Was proper job placement done?" Vice Chair, Hon. Eve Obara pressed. "How did the pension scheme collapse? Did its formation follow legal requirements?"
Hon. Nabii Nabwera questioned whether an actuary had been consulted in establishing the universityโs pension scheme. "To start a pension scheme, an actuary must conduct an evaluation. Did you engage one to determine the best use of the scheme?" he asked.
The Committee also raised concerns about staff morale, with Hon. Rebecca Tonkei questioned the universityโs decision to freeze promotions.
"You have frozen staff promotions. How do you plan to motivate your workforce?" she inquired.
Hon. Abdul Haro referenced a petition by university employees demanding the payment of January salaries and an explanation for unremitted deductions. "Has the January salary been paid? What about medical coverage? Do staff have access to medical care?" he asked.
In response, Vice-Chancellor, Prof. Benedict Mutua admitted that the university had only managed to pay net salaries in January and February 2025, without remitting statutory deductions.
"We have accrued pending bills estimated at Ksh 12.99 billion by 31 January, 2025," said Prof. Mutua.
The university is grappling with pending bills amounting to Ksh 12.99 billion. Prof. Mutua outlined several strategies to address the financial crisis, including seeking conditional grants from the government to settle pending bills, requesting tax waivers on interest and penalties for statutory deductions, implementing staff rationalization to reduce the wage bill.
"To address the outstanding debts, the university has proposed a repayment plan running until the 2031/2032 financial year, in collaboration with the Ministry of Education," stated the Vice Chancellor
He added that, " My prayer to this Committee is that we help this University by bailing it out."
Committee Chair, Hon. Julius Melly noted that a bail out is not a feasible option if the University is not able to make drastic changes to.reduce wage bill and generate income.
"What measures have you put in place as an institution? To address your bloated wage bill, your pending bills. We need concrete plans that can be implemented. Your submissions today need more detail," stated Hon. Melly
Committee Members also probed TUKโs declining student enrollment, despite its prime location in Nairobi.
Members learnt that TUK had 12701 students currently enrolled but noted the enrollment is dwindling. Hon. Jerusha Momanyi questioned why the numbers were decreasing. "This university is in the city center, with good infrastructure and amenities. How come student enrollment is declining?" she asked.
Hon. Clive Gisairo criticized the university for operating beyond its financial capacity. Something that I have noted in all these struggling Universities is the number of infrastructure projects started that have stalled. Why do you have three infrastructure projects that have stalled. For a struggling institution, why are you taking on more than you can handle?" he remarked.
Prof. Mutua acknowledged that the University block expansion has stalled for a number of years.
The Committee on Education is expected to meet with the Cabinet Secretary, Ministry of Education, Technical University of Kenya University Council and Vice- Chancellor, Universities Unions to address management issues and staff welfare of TUK and University of Nairobi.