The Technical University of Kenya (TUK) Vice-Chancellor, Prof. Benedict Mutua, has disclosed that staff at the institution have not received their gross salaries since 2013, leading to a backlog of unremitted statutory deductions.
Prof. Mutua made the revelation when the National Assembly Departmental Committee on Education, led by Chairperson Julius Melly, visited the university to assess its financial challenges.
The committee members expressed concern over the university’s failure to remit deductions to pension schemes, PAYE, NHIF/SHIF, NSSF, and the Affordable Housing Levy.
“Since 2013, no staff member has received their gross salary, meaning statutory deductions have not been remitted. In January and February 2025, we managed to pay net salaries, but not gross salaries,” Prof. Mutua told the committee.
The MPs questioned the university’s financial management, including the collapse of its pension scheme.
Vice Chairperson Eve Obara pressed for clarity on whether proper job placements had been done and why the university lacked a clear organizational structure.
MP Nabii Nabwera inquired whether an actuary had been involved in establishing the university’s pension scheme.
“To start a pension scheme, an actuary must conduct an evaluation. Did you engage one to determine the best use of the scheme?” he asked.
Concerns were also raised about staff morale, with MP Rebecca Tonkei questioning the decision to freeze promotions.
“You have frozen staff promotions. How do you plan to motivate your workforce?” she asked.
MP Abdul Haro referenced a petition by university employees demanding payment of January salaries and an explanation for unremitted deductions.
“Has the January salary been paid? What about medical coverage? Do staff have access to medical care?” he inquired.
Prof. Mutua admitted that the university had only managed to pay net salaries in January and February 2025 and had accrued pending bills amounting to Sh12.99 billion by the end of January.
He outlined several strategies to address the crisis, including seeking conditional government grants, requesting tax waivers on penalties for unremitted deductions, and implementing staff rationalization to reduce the wage bill.
“To address the outstanding debts, the university has proposed a repayment plan running until the 2031/2032 financial year, in collaboration with the Ministry of Education,” he stated, adding that he was seeking the committee’s support to bail out the institution.
However, Committee Chair Julius Melly dismissed the idea of a bailout without drastic financial reforms. “A bailout is not feasible if the university does not take serious steps to reduce its wage bill and generate income. What measures have you put in place? We need concrete plans that can be implemented,” he said.
The committee also scrutinized the declining student enrollment at TUK despite its prime location in Nairobi.
Currently, the university has 12,701 students, but enrollment has been dwindling.
MP Jerusha Momanyi questioned the trend, asking why a well-located institution with good infrastructure was losing students.
MP Clive Gisairo criticized the university for taking on more infrastructure projects than it could afford.
“Something common in struggling universities is stalled projects. Why do you have three unfinished projects when you are already in financial distress?” he asked.
Prof. Mutua admitted that the university’s block expansion had been stalled for years due to financial constraints.
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