Kenyatta University bank accounts have been frozen by the Kenya Revenue Authority (KRA) over the non-remittance of statutory deductions amounting to Ksh.2 billion.
The Ksh. 2 billion demanded by KRA is part of Ksh. 5.6 billion debt the university owes KRA and its suppliers.
The institution is reported to have paid its staff in cheques that bounced at the bank.
This reveals the university’s deepening financial crisis.
In a 2020 audit report by Auditor General Nancy Gathungu, the institution owed the KRA Ksh 2billion.
Further, the Auditor General noted that the cash-strapped institution was still likely to face unending financial problems in the future.
The university is, therefore, technically insolvent and if no urgent positive measures are taken to improve the financial position, it may not be able to meet its mandate in future.said Gathungu.
Additionally, Gathungu stated that the deficit recorded by the university in the year under review reduced the institution’s accumulated surplus from Ksh. 5.84 billion in 2019 to Ksh. 4.5 billion.