Cash-strapped KU sinks into Sh1.3bn deficit

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Corporate

Friday August 13 2021

kenyatta university

Kenyatta College. PHOTO | MARY WAMBUI | NATION MEDIA GROUP

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By EDWIN MUTAI

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Summary

  • Kenyatta College (KU) has dipped into Sh1.3 billion deficit within the year to June, forcing the university to rely upon temporary loans to finance its operations.
  • Auditor-Overall Nancy Gathungu talked about the university deficit stood at Sh677 million within the year to June 2019.
  • She talked about the university is working under monetary difficulties and is relying on costly borrowings which would possibly also just further worsen the liquidity train.

Kenyatta College (KU) has dipped into Sh1.3 billion deficit within the year to June, forcing the university to rely upon rapid interval of time loans to finance its operations.

Auditor-Overall Nancy Gathungu talked about the university deficit stood at Sh677 million within the year to June 2019.

She talked about the university is working under monetary difficulties and is relying on costly borrowings which would possibly also just further worsen the liquidity train.

“The university is therefore, technically bancrupt and if no urgent sure measures are taken to toughen the monetary role, it will also just no longer be ready to fulfill its mandate in future,” Ms Gathungu talked about in a apt audit notion.

The most contemporary audit displays the deep monetary difficulties facing the country’s institutions of greater discovering out.

Public universities contain stumbled on themselves in deep monetary straits blamed on falling student inhabitants, mismanagement and low Divulge funding.

In contemporary months, a mode of universities contain had to scrap some programs and shut satellite tv for computer campuses to slice charge of operations.

Ms Gathungu talked about the deficit that the university recorded within the year under overview diminished KU’s accumulated surplus from Sh5.84 billion in 2019 to Sh4.5 billion.

“Extra, the scorching liabilities of Sh6.38 billion as at June 30, 2020, exceeded the scorching assets of Sh1.58 billion main to a dangerous working capital of Sh4.8 billion,” Ms Gathungu talked about in a chronicle tabled in Parliament.

She talked about the liabilities video show that the university is more doubtless to be unable to fulfill its monetary responsibilities as and when they fall due. Particularly, Ms Gathungu talked about the university became once unable to remit pensions and taxes amounting to Sh3.67 billion, audit prices of Sh8.1 million and other deductions value Sh342.9 million to the respective beneficiaries.

Editor’s Impress: Fable has been up to this point to reflect that KU dipped into Sh1.3 billion deficit and no longer debt as earlier indicated.

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