TUK Declared Insolvent as Deputy VC Admits Staff Unpaid in Full Since 2013
The Technical University of Kenya (TUK) has officially been declared financially insolvent by the National Assembly, following alarming revelations of deep-rooted mismanagement and a ballooning debt of Sh12 billion.
The institution’s financial troubles have been compounded by the fact that no employee has received a full salary since 2013—the year TUK received its charter and attained full university status. This was confirmed by Deputy Vice Chancellor Benedict Mutua during an appearance before the Public Investments Committee on Governance and Education.
“Since 2013, to tell the truth, no TUK employee has received a full salary,” Mutua admitted to the committee.
In response, Members of Parliament, led by Committee Chairperson and Bumula MP Wanami Wamboka, ordered a comprehensive forensic audit of the university’s finances. The Auditor General has been given a three-month deadline to investigate financial records dating back to 2013.
“There is more than meets the eye,” Wamboka remarked. “The committee directs that a forensic audit be carried out within three months, starting from 2013.”
TUK’s fiscal crisis has led to months of unpaid staff salaries, unremitted statutory deductions, and the collapse of its pension scheme. Alarmingly, more than Sh5 billion earmarked for staff pensions is reportedly unaccounted for.
Mutua disclosed that the university operates under a severe financial strain. Its monthly wage bill stands at Sh270 million, while government funding only amounts to Sh63 million.
“Our biggest challenge is having too many staff,” he said. “The government gives us Sh63 million monthly, but we need Sh270 million to cover salaries.”
To address this, the university has initiated a staff rationalisation process, assessing department-level staffing needs in relation to student numbers. The goal is to reduce the institution’s Sh3.4 billion annual wage bill.
Former Vice Chancellor Francis Oduol attributed the longstanding crisis to chronic underfunding and the application of the differentiated unit cost (DUC) model used to allocate government funds to public universities.
“Since 2013, we’ve been experiencing financial difficulties. We have never fully paid the statutory deductions; what we’ve had is a partial payment plan,” Oduol noted.
However, committee members dismissed this justification. Chairperson Wamboka pointed out that the DUC model is applied across all 66 public universities in Kenya.
“The differentiated unit cost funding model is not unique to TUK,” he argued. “If it were the main issue, all public universities would be in crisis. It cannot be the sole reason.”
In a candid admission, former Deputy Vice Chancellor Francis Oduor conceded, “I honestly can’t remember the last time we remitted deductions… to be honest, we haven’t paid any since the university became a fully chartered institution.”
Parliament has now summoned the Ministry of Education and TUK’s senior leadership to appear before it and present a sustainable roadmap for the university’s recovery.
“We will issue directives on how the university should be run after a meeting with the Ministry of Education,” Wamboka said. “There is no academic excellence at TUK given the current state of affairs.”
According to a recent report by the Auditor General, TUK is one of 23 public universities flagged for financial instability. As of June 30, 2024, its unpaid bills had reached Sh11 billion.
The crisis continues to escalate, with Members of Parliament warning that unless immediate corrective action is taken, the university is on the verge of total collapse.
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TUK Declared Insolvent as Deputy VC Admits Staff Unpaid in Full Since 2013
