Inoorero licence at risk over MKU deal to buy tower
International University of Professional Studies, previously Inoorero University. PHOTO | FILE
What you need to know:
The Commission for University Education (CUE) says Inoorero could not complete the transaction without surrendering the interim permit to operate a university and an assessment of what impact the sale would have on continuing students.
CUE says it offered Inoorero a permit to operate as a university partly on grounds that it had premises that are suitable for a university – the eight-storey tower.
Mount Kenya University (MKU) bought the building in Nairobi’s Parklands area for Sh300 million and has designated it to host its law school.
The Commission for University Education (CUE) has questioned the recent sale of eight-storey Inoorero University’s Nairobi campus building without the regulator’s involvement.
CUE says Inoorero could not complete the transaction without surrendering the interim permit to operate a university and an assessment of what impact the sale would have on continuing students.
The commission says it offered Inoorero, now known as International University of Professional Studies (IUPS), a permit to operate as a university partly on grounds that it had premises that are suitable for a university – the eight-storey tower.
It was therefore only logical for the owners of the university to surrender the permit or present alternate premises for certification before selling the building, an action that the CUE says Inoorero has not taken.
Mount Kenya University (MKU) bought the 0.09 hectare parcel of land in Nairobi’s Parklands area for Sh300 million and has designated it to host its law school.
MKU has given proprietors of IUPS led by Francis Nyammo, the former Tetu MP, till December to vacate.
Sources with knowledge of the matter say that Mr Nyammo, who is also the chancellor of IUPS, is looking for an alternative university to absorb his continuing students after a deal for MKU to inherit them collapsed.
The regulator has promised to safeguard the interests of the students.
“We are not sure whether they have sold the building upon which we based on in issuing the operation permit. That is why we have written to them seeking information,” said Prof David Some, CUE secretary.
“As a regulator, we may have to withdraw the license if we find out that the new property is not adequate for conducive offering of academic programmes which they had been accredited for.”
Prof Some said that the regulator will be involved in approving a deal agreed between Mr Nyammo and the continuing students, which includes the transfer of the learners to other universities.
He said the students will need to press court action against IUPS in the event that the university fails to get approval for a new site or a deal to transfer them to other colleges.
“The affected students can seek legal redress for compensation in the event the institution is closed, because our work as regulator is only to approve the proposals by the university over the affected students,” he added.
It is estimated that the university has between 220 and 300 students studying business and IT courses.
On July 28, a creditor put the eight-storey campus building up for auction after IUPS failed to service a multi-million shilling loan that the college took from a bank about five years ago.
This prompted MKU to place a Sh280 million bid against a price of Sh380 million set by Mr Nyammo, who is a top shareholder at listed book publisher Longhorn and was associated with Kenya Finance Bank that collapsed in the early 1990s.
On Tuesday, Mr Nyammo refused to comment on the deal, insisting the transaction is a private affair.
“The sold building was mine. I don’t know why you are coming to question who sold or who is transferring,” said the former MP.
MKU chairman Simon Gicharu on Thursday confirmed the purchase. He said that IUPS has two months to seek an alternative for its continuing students.
“We had a mutual agreement with Inoorero University on when it should vacate the building to pave way for our law school that will occupy the new premises,” said Mr Gicharu in a telephone interview.
He said the push to have IUPS’ current students continue their studies to completion at MKU was not viable.
IUPS in September 2009 secured a long-term debt of Sh320 million from a local development finance institution and raised Sh180 million from individual and corporate investors through private placement but it is not clear what portion of the debt it had cleared.
Insiders said the university has over the years operated a huge overdraft, leading to its present financial predicament that began with a dip in student enrolment four years ago despite a growing demand for higher education.
The institution initially operated as Kenya School of Professional Studies (KSPS) until 2009 when it was granted an interim letter of authority to run as a private university.
It then adopted the name Inoorero University on October 15, 2009 but later rebranded to IUPS in November 2013 to boost its identity amid intense competition from rivals. IUPS recorded a sharp dip in enrolment between 2009 and 2013 largely attributed to a weak faculty.
The university offers degree courses in commerce, procurement, information and communication technology, information science, management and office administration.
MKU has been on expansion trail in recent years on the back of multi-million shilling loans. It presently has 12 campuses in Nairobi, Thika, Mombasa, Meru, Nakuru, Mumias, Eldoret, Kitale, Lodwar, Kakamega and Kabarnet.
It also has a campus in Kigali, Rwanda and a marketing office in Juba, South Sudan.
The purchase of the two properties would help MKU grow its presence within Nairobi where universities have been battling for dominance in the past seven years.
