Six top universities owe the Commission for University Education (CUE) more than three quarters of the Sh1.03 billion for quality assurance charges, which have been outstanding for over eight years.
The commission told the National Assembly’s Public Investment Committee on Governance and Education that the six universities owe it Sh750 million or 75 percent of the total outstanding debt of Sh1.03 billion.
Mike Kuria, the commission’s chief executive officer, told MPs that it has sent demand notices to the six universities to clear the balances that relates to invoicing for quality assurance charges.
The University of Nairobi owes CUE Sh210 million, Kenyatta University (Sh205 million), Moi University (Sh123 million), Jomo Kenyatta University of Agriculture and Technology (Sh92 million), Egerton University (Sh56 million) and Maseno University (Sh56 million).
“The listed universities are facing cash flow challenges,” Mr Kuria said when he appeared before the committee to respond to audit queries for the commissions books of accounts for 2023/24.
“The commission has undertaken reconciliations with the universities as a confirmation of outstanding balances and some have provided payment plans.”
He said Kisii university has paid Sh30 million, Maseno University (Sh8 million) and Mt Kenya University (Sh53.5 million).
Mr Kuria, who was slapped with a Sh500,000 fine for failure to provide crucial documents to auditors during the audit cycle, told the committee that CUE has reconfigured the University Education Management Information System (IMIS) and granted access to universities to all relevant documents relating to receivables.
“We have configured the system in such a way that the universities that fail to pay their outstanding receivables cannot get services from CUE unless they come to us and agree on a payment plan," Mr Kuria said.
Auditor-General Nancy Gathungu said the statement of financial position reflects receivables from exchange transaction of Sh1,032,348,350, which included balances of Sh444,054,550 and Sh588,293,800 in respect of exchange receivables and exchange receivables long term respectively totalling to Sh1,032,348,350.
“However, the balance of Sh1,032,348,350 relates to invoicing for quality assurance charges, which has been outstanding for over eight years,” Ms Gathungu said.
“Included in the balance is accrued dues of Sh2,44,922, which include rental income balance of Sh1,830,000 due from the National Biosafety Authority that has been outstanding since 2018.”
Ms Gathungu said there is no evidence indicating that a proper mechanism had been put in place to recover the long overdue debts.
“In the circumstances, the accuracy, recoverability and fair statements of receivables from exchange transactions balance of Sh1,032,348,350 could not be confirmed,” Ms Gathungu said.
Committee vice chairperson Antony Kibagendi (Kitutu Chache South MP) demanded to know the measures that the commission has put in place to recover and ensure that universities do not continue accumulating further debts.
While responding to the queries, Mr Kuria said the commission has been following up on the settlement of outstanding balances with the universities.
He said all the universities have been visited to reconcile and negotiate on settlement of the debts.
Mr Kuria told lawmakers that the commission has received payments from universities, some have complied with the payment plans and some have had difficulties due to cash flows.
He said some universities are still requesting credit notes for quality assurance not secured from students in the financial years 2014/15 and 2015/16.
