Funding Crisis Hits TUK, Threatens Staff Salaries and Operations
The Technical University of Kenya (TUK) is grappling with a significant funding shortfall following a reduction in government capitation for July 2024.
According to Deputy Registrar Stephen Karanja, the decrease in funding has left the institution unable to fully cover its monthly salary obligations.
Consequently, staff below Grade Five will receive their full salaries, while those above this grade will only be paid 65 percent of their wages.
The Deputy Registrar further explained that the outstanding balance for staff will be paid once the university secures additional funds.
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This situation is a symptom of a broader funding crisis that is currently affecting universities across the country.
Widespread Financial Instability Across Universities
The financial difficulties facing TUK are part of a larger crisis within the higher education sector. A report released in May highlighted the university’s precarious financial situation, revealing that TUK is burdened with over Sh10 billion in debt.
The report, which was presented to Parliament, identified TUK as one of 23 out of 40 universities struggling with severe financial instability due to substantial debts. The combined debt of all affected institutions has reached an alarming Sh76 billion.
The University of Nairobi, Kenyatta University, and Jomo Kenyatta University of Agriculture and Technology (JKUAT) are also severely impacted, with debts of Sh18 billion, Sh9.538 billion, and Sh8.857 billion, respectively.
Consequences of the Financial Crisis
This financial turmoil has led to various operational challenges, including defaults on pension payments, gratuities, insurance premiums, unpaid bills to suppliers, unremitted employee deductions, and outstanding payments to part-time lecturers.
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Experts caution that if these financial issues are not resolved promptly, universities could be at risk of closure, posing a significant threat to the country’s higher education system.
Funding Crisis Hits TUK, Threatens Staff Salaries and Operations
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