House calls for TUK audit as financial woes worsen

The Technical University of Kenya (TUK) is under renewed scrutiny from Parliament due to longstanding financial difficulties that have paralysed operations and disrupted learning.

The National Assembly’s Public Investments Committee (PIC) on Governance and Education has directed the Office of the Auditor-General to conduct a comprehensive audit of the university’s finances.

The exercise, set to span three months, will cover the period from 2013—when the institution received its charter—to date.

The committee’s intervention follows revelations that the university has not paid full salaries to its employees since 2013 and is grappling with pending bills amounting to over Sh11 billion.

The situation has escalated to the point where TUK risks liquidation for failing to remit more than Sh800 million in retirement benefits.

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As part of the probe, Education Cabinet Secretary Julius Ogamba and Principal Secretary Julius Bitok have been summoned to appear before the committee next week to explain how the situation deteriorated to its current state.

“Following the audit, this committee will issue further directives on how the institution should be managed, because it is clear that there is more than meets the eye regarding the university’s operations,” said PIC chair Jack Wamboka.

MPs questioned how TUK has accrued such massive salary arrears.

Central Imenti MP Moses Kirima backed the call for a forensic audit, stating: “I believe the solution is to carry out a special audit from 2013, to determine the number of students admitted compared to the staffing levels over the years.”

The committee issued the directive after submissions by TUK Vice-Chancellor Prof Benedict Mutua, who confirmed that the institution had not paid staff salaries for over a decade, nor remitted statutory deductions due to budgetary constraints.

Prof Mutua attributed the crisis to underfunding, saying the university requires Sh272 million to meet its monthly salary obligations, but receives only Sh63.3 million from the government in capitation.

“Currently, we have had no choice but to allow students to continue learning and sit their exams, even if they have not paid school fees,” he said.

With a capacity of just 14,200 students, TUK is struggling to sustain an annual wage bill of Sh3.04 billion. The university has 1,820 staff.

“The first step we are taking is staff rationalisation across departments, guided by the student-teacher ratio,” Prof Mutua added.

This development comes just a day after the Senate was informed that TUK faces possible winding up over non-remittance of more than Sh800 million to its Staff Retirement Benefits Scheme.

The Retirement Benefits Authority told the Senate that, due to chronic underfunding, repeated breaches, and lack of remedial action, it had been compelled to petition the High Court for the liquidation of the university’s retirement scheme.

“The liquidator is now legally allowed to collect the contribution arrears from the Technical University of Kenya and pay the outstanding benefits to the scheme’s members,” said Chief Executive Officer Charles Machira.