Kenya Methodist University (KeMU) has been forced to sell a Hub that harbours its Nairobi campus for business-related degrees along Koinange street to clear a bank loan among other expenses.
The Institution's Vice Chancellor Maurice Oduor Okoth wrote to Co-operative Bank stating the need to sell the building to clear the loan owed, taxes and staff dues.
According to reports by BusinessDaily, the iconic tower was used as one of the securities for a Sh 1.7 Billion loan from the bank.
“Upon the sale of this property, it is our proposal that we utilise part of the proceeds to clear Sh135 Million the Co-operative Bank advanced KeMU in June 2017 and the balance to pay accrued amounts owed to Kenya Revenue Authority, part-time lecturers, staff deductions and other creditors.
[caption caption="KeMu Hub in Nairobi"]
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“In the event, the value of the latter (tower) is not adequate to cover the loan, additional security will be provided to enable the release of KeMu Hub for sale,” Prof Okoth stated.
Efforts by Kenyans.co.ke to obtain a comment from the institution were futile as the management had not responded to our queries by the time of publishing.
Over the past years, the number of students in private universities has reduced with public universities admitting nearly all students who scored C+ and above.
The sale notice comes after the university almost had its licence revoked.
Earlier in January, the Commission for University Education proposed Catholic University of Eastern Africa (CUEA) and KeMU be given a year to restructure their operations and get a sound financial base.
Mid 2017, KeMU closed it Kisii, Nyeri and Nakuru campuses after taking up restructuring measures.
[caption caption="Past graduants of the institution"]
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