Parliament declares TUK insolvent over Ksh.12B debt as staff unpaid since 2013

The financial rot at the Technical University of Kenya (TUK) is now under the spotlight, as both past and current administrators faced tough questions over how the institution sank into billions in debt.

The Parliamentary Committee on Education and Administration was stunned to learn that TUK staff - including lecturers - haven’t received their full salaries since 2013, the year the institution was awarded full university status and a charter.

TUK Deputy Vice Chancellor Benedict Mutua: “Since 2013, to tell the truth, no TUK employee has received a full salary.”

The primary reason; over-employment. TUK has hired far more staff than it needs - and the financial strain has made it impossible to meet salary obligations.

"Our biggest challenge is having too many staff. The government gives us Ksh.63 million monthly, but we need Ksh.270 million to cover salaries," Mutua added.

That’s not all. The university has failed to remit employee deductions for years. More than Ksh.5 billion in pension funds cannot be accounted for — and overall debts have ballooned beyond Ksh.12 billion.

Former TUK Deputy Vice Chancellor Francis Oduor said: "I honestly can’t remember the last time we remitted deductions… to be honest, we haven’t paid any since the university became a fully chartered institution."

The committee declared the university financially insolvent — and directed government auditors to immediately investigate TUK’s financial management within three months, as it holds talks with the Ministry of Education on how to handle the TUK crisis that threatens to completely stall all activities at the institution.