Ksh.12B Debt Pushes TUK to Insolvency as Employees Go Without Pay Since 2013

Ksh.12B Debt Pushes TUK to Insolvency as Employees Go Without Pay Since 2013.

The Technical University of Kenya (TUK) is now at the center of a financial storm, with Parliament raising serious concerns over its unsustainable debt and longstanding salary arrears. Both current and former university officials were summoned to respond to tough questions on how the institution accrued debts totaling more than Ksh.12 billion.

The Parliamentary Committee on Education and Administration was alarmed to discover that TUK staff, including lecturers, have not received full salaries since 2013. This marked the same year the institution attained full university status and was granted a charter.

According to Deputy Vice Chancellor Benedict Mutua, not a single TUK employee had received a complete paycheck since the charter was awarded.

Mutua attributed the issue primarily to over-employment, pointing out that the university had taken on more staff than it could afford to sustain. He explained that while the government allocates Ksh.63 million monthly to the university, the actual salary requirement stands at Ksh.270 million—highlighting a significant shortfall that has made it impossible to meet payroll demands.

“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.

The financial troubles at TUK extend beyond unpaid wages. Years of failing to remit staff deductions have led to a pension fund deficit exceeding Ksh.5 billion.

Former Deputy Vice Chancellor Francis Oduor admitted that the remittance of deductions had not occurred since the institution transitioned into a fully chartered university, underscoring the depth of financial mismanagement.

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In response to the revelations, the Parliamentary Committee officially declared TUK financially insolvent. Government auditors were instructed to launch a comprehensive investigation into the university’s financial operations within a three-month timeframe.

Concurrently, the committee plans to engage the Ministry of Education to develop a course of action aimed at salvaging the institution, which now faces the real threat of a total operational shutdown.

Ksh.12B Debt Pushes TUK to Insolvency as Employees Go Without Pay Since 2013.

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