Four universities have been marked for failure to pay up to Sh34 billion in deductions to KRA, NHIF, NSSF and other agencies.
A presentation by the Education ministry cites the University of Nairobi, Moi, Egerton and Technical University of Kenya top for notoriety in unremitting staff deductions.
The presentation made by University Education PS Simon Nabukwesi before the National Assembly Education committee pinned the skipped deductions to financial challenges occasioned by the underfunding of the sector and reduced revenues.
The presentation revealed that a collective Sh34 billion was owed to various state agencies - Kenya Revenue Authority, National Hospital Insurance Fund and the National Social Security Fund.
Also in default are insurance premiums, Sacco contributions and pension scheme dues.
The PS did not, however, divulge how much each institution owed.
To correct the funding problem, Nabukwesi also fronted a proposal to have school fees for government-sponsored programmes tripled from Sh16,000.
The proposal was part of a May resolution by Vice Chancellors of public universities seeking for a new fee rate to be set, saying the current one is outdated.
The proposal sought that the new fee rates be implemented in phases and start with first years of the September 2020 intake.
However, by the time admission took place, the proposal was yet to get a nod, thus the VCs were compelled to stick to the contested fee rates.
On Tuesday, Parliament asked the government to consider reintroducing Module Two — self-sponsored programmes — to help in income generation.
Statutory deductions
Under Labour laws, remittance of statutory, loan and members' deductions to Saccos and banks are mandatory employer obligations as they are taken from the employee’s pay.
The unremitted billions could, therefore, only point to a situation where universities either hold the remittances or appropriate to other uses which is against the law.
MPs led by Wilson Sossion (nominated) called for sterner penalties for VCs engaging in such an illegality which leaves employees exposed.
“This is a crime and a serious violation of existing labour laws. Employers are expected to submit by the third day of every month, and it is not within the discretion of employers to choose what to remit,” Sossion said.
“This is an eyesore of lawlessness by our universities.”
Nyamira Woman Representative Jerusha Momanyi asked how universities chose to pay salaries and retain the deductions which are supposed to be paid alongside the monthly earnings.
The PS was appearing before the committee to deliberate on the disparities in state funding of public universities, as well as the fees charged to government-sponsored undergraduate students in both public and private universities.
He also came under fire after indicating that universities may not be in a position to honour the 2017-21 Collective Bargaining Agreement for staff due to the financial constraints caused by budget reduction and the Covid-19 pandemic.
In 2020-21, the state department incurred a Sh3.1 billion budget reduction.
“The effect of this reduction is that the current financial year budget for universities is less by Sh2.3 billion. This reduction and effect of Covid-19 pandemic has continued to affect the implementation of CBA and other operations,” Nabukwesi said.
To help sort the dwindling finances, the PS rooted for review of university fees upwards saying 1988 fees currently charged cannot adequately respond to changes in cost of living as well as the changing trends in education.
He explained that the government had set a flat rate of Sh70,000 per academic programme per student in 1989, which had not been amended.
Edited by R.Wamochie