Parliament Orders Forensic Audit of TUK Amid Sh11 Billion Debt Crisis and Staff Unrest

Members of Parliament have called for a special forensic audit of the Technical University of Kenya (TUK), citing worsening financial troubles that have paralyzed operations and disrupted learning at the institution.

The National Assembly’s Public Investments Committee on Governance and Education, chaired by Bumula MP Wanami Wamboka, directed the Auditor General to conduct an audit covering the period from 2013 to date and submit a report within three months.

“There is more than meets the eye. The committee directs that a forensic audit [be] carried out within three months, starting from 2013,” Wamboka stated.

TUK’s financial crisis has spiralled with stakeholders calling for urgent government intervention to address instability that has left staff unpaid.

Documents tabled before the committee outlined various challenges facing the university’s workforce, including delayed salaries, unremitted statutory deductions, and the collapse of the institution’s pension scheme.

Appearing before the committee, former Vice Chancellor Francis Oduol explained that since the university attain a charter, it has faced chronic financial constraints that have only worsened over time.

DUC model blamed

Oduol partly attributed the situation to the differentiated unit cost funding model, which he argued has increased financial strain on public universities.

“Since 2013, we’ve been experiencing financial difficulties. We have never fully paid the statutory deductions; what we’ve had is a partial payment plan,” Oduol stated.

However, the committee chair dismissed this explanation, noting that the funding model applies across all public universities.

“We have 66 universities. The differentiated unit cost funding model is not unique to TUK. If it’s about the model, then all institutions would be in crisis. It cannot be the only reason,” Wamboka remarked.

The Auditor General’s report flagged TUK, which received its charter in 2013, among twenty-three public universities facing severe financial instability. As of June 30, 2024, the university’s pending bills had reached Sh11 billion.

Vice Chancellor Benedict Mutua told the committee that the institution is struggling under a Sh3.4 billion wage bill, which has made it impossible to pay staff for months.

“The first step we are taking is staff rationalization within each department by reviewing the teacher-student ratio. We are looking at a Sh3.4 billion wage bill, which we are working to reduce,” he noted.

Wamboka said the committee will summon officials from the Ministry of Education and TUK management to deliberate on a sustainable way forward.

“We will issue directives on how the university should [be] run after a meeting with the Ministry of Education. There is no academic excellence at TUK given the current state of affairs,” he concluded.