UoN Hires Bosses to Deal With Ksh7 Billion Debt

University Of Nairobi
University Of Nairobi

The University of Nairobi (UoN) has implemented a raft of leadership changes to deal with the Ksh7.2 billion debt it owes to Kenya Revenue Authority (KRA)

University Vice-Chancellor Stephen Kiama made his first appointments since his controversial appointment aiming to turn around the loss-making institution.

Prof Kiama has appointed Prof Julius Ogeng'o and Prof Margaret Hutchinson as associates Vice-Chancellors in charge of academic affairs and research, innovation and enterprise respectively.

UoN VC Professor Stephen Kiama addresses first years during a virtual orientation on Thursday, September 3, 2020

The changes come just a week after the institution collapsed the teaching functions from the initial 35 to 11 facilities. The move saw some top officials lose their jobs and Prof Kiama announced that their contracts will not be renewed.

"This is a reengineered central supports system run by professionals to ensure efficiency and accountability in service delivery," Kiama said after announcing the appointments.

The institution is struggling to honour tax obligations, retirement benefits, and insurance premiums for employees’ obligations.

 On Tuesday, July 13, Kiama stated that the high pending bill forms part of the reasons the university is carrying out financial, curriculum, and structural reforms to mitigate the crisis.

The institution risks losing its assets from the unpaid bills, collection of duty directly from their suppliers, bank accounts holding students’ fees, and prosecution of the top officials.

“The UoN has been operating under a huge deficit and today we owe KRA Ksh7.2 billion which has come as a result of us not costing our services,” Kiama noted.

According to the audit report by the former Auditor-General Edward Ouko, the university lost Ksh1.4 billion in the year to June 2018 following their overrunning budget and failure to raise project revenue.

The leadership changes come after the institution announced financial changes that have caused unrest among some of the students.

KMPDU leaders led by their Secretary-General joined UoN Medical Students in the demonstrations which they termed peaceful protests against the proposed fee increment on Wednesday, July 14.

Police arrested three student leaders who were taking part in protests.

UoN students during demos on Wednesday, July 14 2021
UoN students during demos on Wednesday, July 14 2021
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