Kenyatta University seeks Sh450 million loan in the wake of financial crisis facing universities

By Nzioka Justin | Tuesday, Feb 18th 2020 at 12:11
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Following the financial hard times facing higher learning institutions, Kenyatta University (KU) is now thinking of securing a loan of up to Sh450 million from local lenders.

According to Kenyatta University, lenders have until the end of February to offer their quotation over the loan, whose repayment period is ten years.

"KU will select an individual financial institution among those invited to submit proposals or those who respond to the invitation for proposals in accordance with the method of selection detailed under this section and consistent with the regulations," read part of the tender notice.

Recently, some universities have had to pull down some courses offered in addition to closing down their satellite campuses in a bid to cut down operational costs.

Kenyatta University was caught up at the centre of the crisis after two of its abroad campuses had to be shut down. Kigali campus was worth Sh420 million, while the Arusha campus was estimated at Sh150 million.

Commission of University Education for Kenya illegalized both Kigali and Arusha campus after it emerged that they were established contrary to the University Act.

This is after it emerged that the institution was publicly funded with taxpayers' cash. KU has failed in pension and taxes' remittance amounting to Sh1 billion.

In addition, the institution never paid Sh3 million being for audit fees plus other deductions worth over Sh200 million.

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