Education Cabinet Secretary Julius Ogamba was yesterday taken to task over the financial crisis and mismanagement at the University of Nairobi and the Technical University of Kenya (TUK).

Ogamba who appeared before the National Assembly committee on Education was required to give a recovery plan for the two institutions that the House teams described as being on the verge of collapse. This was after it emerged that that the University of Nairobi was grappling with Sh13.6 billion in pending bills while TUK was also chained down by Sh12.9 billion in pending bills owed to creditors.

According to documents tabled before the Tinderet MP Julius Melly-led committee, university of Nairobi owed Sh4.07 billion to KRA, Sh7.78 billion in default of pension contributions, Sh25.6 million to NSSF, Sh21.02 million to the Housing levy, Sh28.77 to staff bank loans, 20.89 million to Chuna Sacco Sh4.5 million to Insurance companies and a further Sh7.3 million in staff welfare. General suppliers are owed Sh194.2 million.

Others include Direct service providers owed Sh719.9 million, staff medical refunds amounting to Sh22.23 million, Hospitalization bills Sh21.3 million, Koitalel Samoei University college owed Sh11986 million, CUE Sh134.62 million, KUCCPS Sh36.4 million, AOG Sh18.92 million and an Absa bank loan amounting to Sh351.8 million.
The committee also heard that operations at the University had almost been crippled thanks to prolonged infighting and a scramble for control of the institution- evidenced by a spate of events triggered by reforms instituted in 2021 and aimed at changing the governance structure of the University.

At TUK, the category of pending bills included Sh360.1 owed to contractors and General creditors, Sh4.385 billion in defaulted pension funds, Sh70.2 million third party funds, Sh6.7 billion in statutory deduction, Sh305.87 million in Banks, saccos and insurance deductions, CBA arrears Sh761.08 million and staff claims amounting to Sh398.8 million.

It further emerged that pensioners at TUK had lost Sh5billion after the pension scheme was procedurally wound up by unscrupulous individuals. The institution had also been plagued by issues such as chronic delay of salaries, blatant violation of workers’ rights, and the non-remittance statutory and third-party deductions for the last 12 years since its inceptions.

“In the case of TUK where the Sh5 billion was lost, what action have you taken to ensure that individuals behind the winding up of the pension scheme are brought to book?” posed chairperson Melly.

Teso South MP Mary Emase said, “We have received reports that two reports of two cases where lost their contributions to the pension scheme. We need to know how the Sh5 billion got lost. Listening to the two cases, in University of Nairobi and TUK, it mirrors what is happening in all universities.”

Baringo North MP Joseph Makilap spoke on the issues affecting TUK.

“There is a systematic problem at the institution since its inception. It will never rise up to its place until you deal with the systemic issues,” he stated.

“Having Sh12.9 billion in pending Bills also raises eyebrows. Have you as the CS conducted investigations on what led to this,” he further enquired.

But in his response to concerns regarding retirement benefits and remittance of statutory and third party obligations, the CS said that the Ministry had made financial commitments totaling Sh12.9 billion spread out between the 2025 financial year to the 2021/2032 financial year.

“On February 24, 2025. TUK formally requested that the Retirement Benefit Authority (RBA) to give TUK the authority to establish a new staff retirements benefit scheme from all the three unions (UASU, KUDHEIHA and KUSU. This measure intended to secure the future financial well-being of the staff,” submitted the CS.

To address the issues at UON, he said that his ministry had already shepherded the introduction of strategies such as the prioritization of fiscal discipline, government engagement, alumni and convocation engagement and research collaboration to address the issue of pending bills.

To quell the administrative issues, the CS expressed intension to challenge the court decision that reinstated the ousted UoN Council Chairman Amukowa Anangwe.  Ogamba said that the ministry of education is working on response on a decision to reinstate the degazetted Council chair.

Further he noted, “Currently public universities are working with the public service commission to develop generic human resource instruments which each university will customize and adopt. The essence is to ensure rationalization, uniformity and harmony in the human resource instrument as across public universities.”