UoN, KU among universities owing CUE Sh750 million debt in quality assurance fees
Appearing before the National Assembly’s Public Investment Committee on Governance and Education, CUE Chief Executive Officer Mike Kuria said the commission has issued demand notices to the six universities to settle their debts.
The University of Nairobi, Kenyatta University and Moi University are among six top public institutions that owe the Commission for University Education (CUE) more than Sh750 million in quality assurance fees that have remained unpaid for over eight years.
According to CUE, the six universities collectively account for 75 per cent of the Sh1.03 billion in outstanding quality assurance charges.
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Appearing before the National Assembly’s Public Investment Committee on Governance and Education, CUE Chief Executive Officer Mike Kuria said the commission has issued demand notices to the six universities to settle their debts.
The University of Nairobi leads with Sh210 million, followed by 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,” Kuria told the committee while responding to audit queries on the commission’s books of accounts for the 2023/24 financial year.
He noted that the commission has engaged the universities through reconciliation processes.
“The commission has undertaken reconciliations with the universities as a confirmation of outstanding balances, and some have provided payment plans,” he said.
Kuria added that while some universities have honoured their obligations, others are still struggling financially.
“Kisii University has paid Sh30 million, Maseno University (Sh8 million) and Mt Kenya University (Sh53.5 million),” he said.
To enforce compliance, Kuria told MPs that CUE has reconfigured the University Education Management Information System (UEMIS) to restrict access to services for non-compliant institutions.
“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,” he said.
The Auditor General, Nancy Gathungu, flagged the receivables in her report, stating that the debts have remained unresolved for more than eight years.
“The statement of financial position reflects receivables from exchange transactions 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,” she said.
She raised concerns over the lack of a concrete recovery strategy. “There is no evidence indicating that a proper mechanism had been put in place to recover the long overdue debts,” she said.
Gathungu further pointed out that the financial statements did not include provisions for doubtful debts.
The auditor also revealed that part of the balance includes accrued dues of Sh2,444,922, which includes Sh1,830,000 in rental income owed by the National Biosafety Authority since 2018.
Committee vice chairperson Antony Kibagendi (Kitutu Chache South MP) pressed the commission on its recovery strategy and future preventive measures.
“What are you doing to ensure debts do not continue to grow?” he posed.
In response, Kuria reiterated that the commission had visited all affected universities to reconcile and negotiate repayment plans.
“The commission has been following up on the settlement of outstanding balances with the universities,” he said.
He acknowledged that while some institutions have complied, others continue to request credit notes for quality assurance charges not recovered from students in the financial years 2014/15 and 2015/16.
Kuria was also fined Sh500,000 for failing to provide crucial documents to auditors during the last audit cycle.
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