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List of public universities struggling to meet financial obligations

UREPORT
By Patrick Kibet | October 13th 2016

Public universities are struggling to meet their financial obligations, a report by the Public Investments Committee (PIC) shows.

The committee chaired by Aldas MP Adan Keynan interrogated audited accounts for the financial year 2013-14, which revealed most public universities reported negative working capital.

In the report, which was debated and adopted last week by the National Assembly, some universities are technically insolvent, with current liabilities exceeding total current assets while other institutions operated in deficit during the period under review.

This is despite the universities raking in billions from self-sponsored programmes commonly known are parallel programmes.

According to the audits, Maseno University, Kisii University, Dedan Kimathi University, Pwani University, Multimedia University, and University of Eldoret are in precarious financial situation with negative working capital.

The Keynan-led committee also observed that Technical University of Kenya had current liabilities amounting to Sh766,343,093 against its Sh322,623,471 current assets.

The committee, in its recommendations, said the Ministry of Education, Science and Technology and the National Treasury should develop a sustainable financial mechanism for public universities.

Strategic partnerships

"Public universities should not solely depend on student-based revenue sources but should diversify their revenue base by exploring strategic partnerships and linkages with the private sector," the report recommends.

While moving the motion at the National Assembly to adopt the PIC report, Kikuyu MP Kimani Ichungwah noted that State corporations in the education sector rely heavily on the exchequer to finance their operations.

The audits showed University of Eldoret had a negative working capital of Sh78,809,549, with total current liabilities of Sh409,342,704, which exceeded current assets balance of Sh330,533,155.

According to the Auditor General, Dedan Kimathi University, during the 2013-14 financial year, recorded a negative working capital of Sh105,370,871.

Pwani University, according to the auditor general, had a negative working capital of Sh112 million.

Maseno University also reported a deficit of Sh20.5 million in the 2013-14 financial year, Kisii University reported a negative working capital of Sh234 million while Multimedia University reported a negative working capital of Sh234 million.

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