NAIROBI, Kenya, Oct 22 – Members of Parliament have questioned the University of Nairobi’s management over its Sh20 billion deficit, demanding a clear plan to settle debts despite the institution’s asset base of more than Sh200 billion.
The Parliamentary Public Investments Committee on Governance and Education challenged Vice Chancellor Ayub Gitau to explain how the university plans to meet its financial obligations, with staff and creditors affected by the cash constraints.
Committee Chairperson Dick Maungu said the university had failed to show how its assets would help address its liabilities.
“Members are concerned because, as you indicated, there is no nexus between the report presented and what you have said. You have an asset base of more than Sh200 billion, but now the people who are suffering are the staff and creditors,” Maungu said.
He urged the university to present practical measures to raise revenue from its property and investments.
“You need to bring strategies of clearing the debt. We cannot see pragmatic steps you have put to secure the university in terms of investment,” he added.
Gitau told the committee that the university was exploring ways to commercialise its assets to generate more revenue.
“We have a deficit of about Sh20 billion. We are in the stages of commercializing our asset base, which totals about Sh200 billion,” he said.
The vice chancellor also said the university was implementing austerity measures to contain spending and make better use of available resources.
However, the committee pressed the university to show how the proposed measures would generate income and help it settle outstanding payments.
The university has yet to provide a detailed timeline showing how the commercialisation plan will reduce the deficit and clear payments owed to staff and creditors.
