Taita Taveta University in accute financial problems

Taita Taveta University faces acute financial problems which have threatened to disrupt provision of services at the institution.

A report by Auditor General Nancy Gathungu for the financial year ending June 2023 says the institution is technically insolvent and thus unable to render services.

According to the report, the institution’s current liabilities have exceeded its assets, putting it on a red line.

“The statement of financial position reflects total current liabilities of Sh301.19 million which exceeded total current assets of Sh79.63 million resulting in a negative working capital of Sh221.55 million,” the report says.

The university reported a deficit of Sh65.45 million for the year that ended on June 30, 2023.

“This is an indication of existence of material uncertainty which may cast significant doubt on the university’s ability to sustain its services and to meet its financial obligations as and when they fall due,” Gathungu said.

The report comes when the Kenya Kwanza government is implementing controversial university funding model to address cash problems in institutions of higher learning.

“The vice-chancellors confirmed that the financing model is working and in three years will sort out the financial challenges facing our universities,” Ruto said last year.

A report by the controller of the budget released last year said public universities accumulated pending bills amounting to Sh62 billion as of February last year.

The report showed that Kenyatta University led the pack with Sh11.7 billion, followed by the Technical University of Kenya with Sh8.2 billion, then Jomo Kenyatta University of Agriculture and Technology at Sh8.1 billion.

Egerton University and Moi University have Sh7.8 billion and Sh7.5 billion pending bills. In the report, Gathungu said projects worth Sh503.07 million have stalled or their completion periods have elapsed at Taita Taveta University amid cash crunch.

They include the construction of an administration block at the main campus which started on October 23, 2017 at Sh345.57 million.

The project was supposed to be completed in December 2018 but was only 80 per cent complete.

Also stalled or delayed is construction and equipping of the mines, fuel and mineral processing laboratory phase III at cost of Sh98.85 million.

Construction of a water treatment plant and dairy shed at Taita Taveta University for Sh3.59 million has stalled and construction of two-classroom Block phase I at the institution has stalled.

“In the circumstances, value for money had not been realised from these projects,” the report says.

Further, Gathungu fingered the management of the institution for ethnic imbalance in hiring of staff.

During the year under review, the total number of employees of the university was 237 out of which 87 or 37 per cent of the total number were members of the dominant ethnic community in the county.