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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