The University of Nairobi (UoN) has dismissed reports that it is facing a cash crisis due to low State funding and under-collection of internal revenue.
Reports appearing in a section of the media Thursday alleged the university was undergoing hard financial times and had even failed to meet its statutory obligations on its employees.
The university, in a statement sent to newsroomsThursday, said it was not in any state of financial crisis at the moment.
"The media report relied on the Auditor General's report of 2014/2015 financial year and is not a true reflection of the current financial status of the university. The university is not in a state of crisis," read the statement in part.
It added: "UoN just like other public institutions is experiencing cash-flow challenges emanating from delayed exchequer issues. But we are up to date with respect to remission of statutory deductions to KRA, NSSF,Pension schemes, HELB and SACCOs."
Unpaid claims
The statement signed by the university's Corporate Affairs Director John Orindi stated the financial difficulties experienced by the institution in the 2014/205 financial year was as a result of unpaid claims from the Government and other public universities.
It was claimed in the special audit report that the university was doing badly in terms of finances and had resorted to use of commercial bank overdrafts to meet its day to day obligations
But Mr Orindi defended the move, saying negotiation for an overdraft facility was a normal and regular financial practice, which is used to deal with urgent cash flow requirements and is not necessarily an indication of a financial crisis.
