Tourism Cabinet Secretary Najib Balala has pleaded with the government to write off a Sh2.5 billion debt it is owed by Utalii College which he has revealed is nearly debt trotted.
According to Balala the institution was under a serious financial crisis.
The debt is said to have accumulated from penalties and interest on a loan of Sh140 million the college had obtained in 1996.
Of the accrued amount, Balala said the college had managed to pay 13 million by December 2016 pleading that the college which trains largely tourism industry personnel needed the aid.
“I request the government to waive the interest and penalties accrued on the loan in an effort to improve the college’s working capital,” said Mr Balala.
He pegged the need to help retrieve the college from financial woes on the students that he believes will be future leaders in the industry.
In the last financial year, 2015/16, the Tourism Fund gave the college Sh283 million while the government transfers contributed Sh260 millions of its total revenues of Sh711 million.
Sh168 million was from its own sources but was certainly unable to service the loan though the CS said the debts had not affected training at the facility.
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