The National Assembly Departmental Committee on Education has raised serious concerns regarding the Technical University of Kenya’s financial situation, highlighted by unpaid salaries since 2013 and issues with its pension scheme. Discussions included proposals for a repayment plan and concerns about declining student enrollment as well as stalled infrastructure projects. The Vice Chancellor’s plea for a bailout is contingent upon implementing significant changes to the university’s financial management.
The National Assembly Departmental Committee on Education has expressed significant concerns regarding the financial crisis at the Technical University of Kenya (TU-K). Led by Minister of Parliament Julius Melly, the committee inquired about the institution’s management of delayed salaries, unremitted statutory deductions, and the jeopardized pension scheme during their visit to the university.
During the proceedings, Vice Chancellor Prof. Benedict Mutua disclosed that TU-K staff have not received gross salaries since 2013, leading to accrued unremitted statutory deductions. Prof. Mutua stated, “Since 2013, no staff member has received their gross salary, so statutory deductions, including pensions, NSSF, and NHIF/SHIF, have not been remitted. We managed to pay net salaries, not gross salaries, in January and February 2025.”
The committee also raised inquiries about the establishment of the university’s pension scheme. Vice-Chairperson Eve Obara and MP Nabii Nabwera questioned whether an actuary was consulted prior to its implementation. Nabwera specifically asked, “Did you engage one to determine the best use of the scheme?”
Concerns about staff morale were highlighted, particularly regarding the university’s freezing of promotions, which prompted additional scrutiny from Rebecca Tonkei. Prof. Mutua elaborated on the university’s financial situation, revealing pending bills totaling Sh12.99 billion. He articulated the need for a repayment plan coordinated with the Ministry of Education, requesting assistance from the committee: “My prayer to this Committee is that we help this university by bailing it out.”
Chairman Julius Melly cautioned that a bailout would only be considered if the university could implement significant reforms to lower its wage expenses and enhance revenue. The Education Committee noted a current enrollment of 12,701 students; however, the trend has been declining despite TU-K’s favorable location and facilities. Clive Gisairo raised concerns about incomplete infrastructure projects, stating, “Why do you have three infrastructure projects that have stalled? For a struggling institution, why are you taking on more than you can handle?”
The National Assembly’s inquiry into the Technical University of Kenya’s financial crisis reveals severe operational challenges, including delayed salaries and an unstable pension scheme. With significant debts impacting staff morale and enrollment rates declining, the Vice Chancellor has urged for financial assistance. However, committee members emphasize that substantial reforms are necessary before any bailouts can be considered, particularly regarding financial accountability and infrastructure management.
Original Source: www.capitalfm.co.ke
