TAITA TAVETA, Kenya – Taita Taveta University is grappling with a severe financial crisis that has raised alarm over its ability to sustain operations, a report by Auditor General Nancy Gathungu has revealed.
The institution is technically insolvent, with its liabilities vastly outweighing its assets, signaling potential disruption of services.
According to the Auditor General’s report for the financial year ending June 2023, the university’s current liabilities stand at Sh301.19 million against current assets of only Sh79.63 million.
This creates a negative working capital of Sh221.55 million. The institution also recorded a Sh65.45 million deficit during the same period.
“This indicates material uncertainty which may cast significant doubt on the university’s ability to sustain its services and meet its financial obligations as they fall due,” Gathungu warned in the report.
The cash crunch has stalled multiple critical projects at the institution.
The construction of an administration block, which began in 2017 at a cost of Sh345.57 million, was supposed to be completed by December 2018 but remains only 80% finished.
Other delayed projects include a Sh98.85 million mines and mineral processing laboratory, a Sh3.59 million water treatment plant, and a two-classroom block.
“In the circumstances, value for money has not been realized from these projects,” the report notes.
Taita Taveta University’s struggles reflect a broader crisis in Kenya’s public universities, which are collectively weighed down by Sh62 billion in pending bills, according to a report from the Controller of Budget.
Institutions like Kenyatta University, Technical University of Kenya, and Jomo Kenyatta University of Agriculture and Technology top the list, with pending bills ranging from Sh8 billion to Sh11 billion.
The Kenya Kwanza administration, led by President William Ruto, has introduced a new university funding model to address the sector’s financial woes.
Ruto expressed optimism about the model last year, saying it would resolve the challenges in three years.
However, universities remain in dire straits, raising questions about the model’s immediate effectiveness.
The Auditor General’s report also highlighted governance issues at Taita Taveta University, pointing to ethnic imbalance in staff recruitment.
Of the 237 employees, 87 (37%) are from the dominant ethnic community in the region, raising questions about inclusivity in hiring practices.
The institution is technically insolvent, with its liabilities vastly outweighing its assets, signaling potential disruption of services.
According to the Auditor General’s report for the financial year ending June 2023, the university’s current liabilities stand at Sh301.19 million against current assets of only Sh79.63 million.
This creates a negative working capital of Sh221.55 million. The institution also recorded a Sh65.45 million deficit during the same period.
“This indicates material uncertainty which may cast significant doubt on the university’s ability to sustain its services and meet its financial obligations as they fall due,” Gathungu warned in the report.
The cash crunch has stalled multiple critical projects at the institution.
The construction of an administration block, which began in 2017 at a cost of Sh345.57 million, was supposed to be completed by December 2018 but remains only 80% finished.
Other delayed projects include a Sh98.85 million mines and mineral processing laboratory, a Sh3.59 million water treatment plant, and a two-classroom block.
“In the circumstances, value for money has not been realized from these projects,” the report notes.
Taita Taveta University’s struggles reflect a broader crisis in Kenya’s public universities, which are collectively weighed down by Sh62 billion in pending bills, according to a report from the Controller of Budget.
Institutions like Kenyatta University, Technical University of Kenya, and Jomo Kenyatta University of Agriculture and Technology top the list, with pending bills ranging from Sh8 billion to Sh11 billion.
The Kenya Kwanza administration, led by President William Ruto, has introduced a new university funding model to address the sector’s financial woes.
Ruto expressed optimism about the model last year, saying it would resolve the challenges in three years.
However, universities remain in dire straits, raising questions about the model’s immediate effectiveness.
The Auditor General’s report also highlighted governance issues at Taita Taveta University, pointing to ethnic imbalance in staff recruitment.
Of the 237 employees, 87 (37%) are from the dominant ethnic community in the region, raising questions about inclusivity in hiring practices.
