The latest report by the Auditor General has rendered a top Kenyan University bankrupt.
In a report laid on the table of the House, Auditor General, Nancy Gathungu, indicated that Jomo Kenyatta University of Agriculture and Technology (JKUAT) is insolvent.
Gathungu stated that the public institution’s current debts and expenses outweigh its assets leading to negative working capital.
The university's liabilities were valued at Ksh212.7 million with its assets summing up to Ksh162.8 million, resulting in a deficit of Ksh49.9 Million.
"The company is, therefore, technically insolvent and the financial statements have been prepared on a going concern basis on the assumption of continued financial assistance from JKUAT bankers and creditors,” stated the report.
The Auditor-General also raised concerns over long outstanding debts, including Ksh3.5 million that has been outstanding for more than three years. She also stated that the university failed to pay debts that have been pending for more than 10 years.
Gathungu added that the management has not provided evidence to show steps taken towards full recovery thus making the university liable to financial challenges if the current situation is not addressed.
Other institutions on the spot included the Kabete National Polytechnic which has a disputed 52.6 acres of land with an estimated value of Ksh4 billion, that was allocated under grant number IR 23463 for a period of 99 years from January 1, 1967, and registered in the Board of Governors of Kabete Technical School.
She stated that despite claims of ownership by the institution, a review of files highlighted that there are three pending court cases with St.Joseph Anglican Church of Kenya which is occupying 5 acres of land.
She also raised concerns over the Keroka Technical Training Institute where there were questions raised over irregular costs incurred during the construction of the library.
The report also pointed out that Keroka does not have a title deed to authenticate the location and ownership of a claimed piece of land which is estimated at Ksh11.8 million.
“Consequently, the ownership of the land as well as the accuracy and completeness of its net book value of Ksh11.8 million as of June 30, 2019, could not be ascertained,” she stated.
