Moi University graduates with school fees arrears will be blacklisted on the Credit Reference Bureaus (CRB) if a report tabled before Parliament is approved.
The Public Investments Committee (PIC) reported that the University's alumni owe the institution long outstanding fee balances amounting to over Sh500 Billion as per their latest audit.
The alarming figure has been blamed on the institution's failure to set up efficient structures of recovering debt.
"This situation may be indicative of the University’s weak debt management system which tends to undermine its liquidity position," stated PIC Chairman Mr Adan Keynan.
The Committee's report goes further to recommend the strict measure to ensure payment by the defaulters.
"The committee recommends that the vice chancellor forward the list of fees defaulters for listing by the Credit Reference Bureau," the report reads in part.
In addition, the Committee instruct's the university's Chancellor, Prof. Mirriam Were, to collaborate with other institutions that can provide reliable data to ascertain the number of graduates that are gainfully employed.
"The committee recommends that the vice-chancellor collaborates with Kenya Revenue Authority (KRA) to trace university graduates with debts, partner with other institutions like National Hospital Insurance Fund (NHIF), National Social Security Fund (NSSF), National Transport Safety Authority (NTSA), Teachers Service Commission (TSC) and government Ministries with large databases of Kenyans who are gainfully employed and use of debt collection agencies to net defaulters," the report states.
The Committee also recommends that structures be set up to make provisions in its accounts where necessary and seek approval to write off uncollectable debts.
