Taita Taveta University is grappling with acute financial challenges, threatening its ability to provide essential services. According to Auditor General Nancy Gathungu’s report for the financial year ending June 2023, the institution is technically insolvent, with liabilities far exceeding its assets.
The report highlights a staggering deficit in the university’s financial position. Current liabilities stand at KSh 301.19 million, against assets of only KSh 79.63 million, leaving a negative working capital of KSh 221.55 million. The institution also recorded a deficit of KSh 65.45 million during the year under review.
“This is an indication of material uncertainty which may cast significant doubt on the university’s ability to sustain its services and meet financial obligations,” Gathungu noted.
These revelations come as the Kenya Kwanza government rolls out a controversial university funding model aimed at addressing the sector’s financial woes. While President William Ruto has expressed confidence in the model, citing assurances from vice-chancellors that it will stabilize university finances within three years, public universities across the country continue to struggle.
The Auditor General’s report further reveals that Taita Taveta University has stalled projects worth KSh 503.07 million, exacerbating the institution’s financial strain. These include an administration block initiated in 2017 at a cost of KSh 345.57 million, which remains 80% complete, and the mines, fuel, and mineral processing laboratory phase III project valued at KSh 98.85 million. Additionally, the construction of a water treatment plant, a dairy shed, and a two-classroom block have all stalled.
“These delays mean that value for money has not been realized,” the report states.
Adding to the institution’s troubles, the Auditor General flagged ethnic imbalance in staffing. Of the 237 employees, 87 (37%) belong to the dominant ethnic community in Taita Taveta County, raising questions about inclusivity and equity in hiring practices.
The university’s financial woes mirror the broader crisis in Kenya’s higher education sector, which has seen public universities accumulate pending bills totaling KSh 62 billion as of February 2023.
