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Economy

Universities ordered to publish periodic financial reports

Auditor General Edward Ouko. FILE PHOTO | NMG
Auditor General Edward Ouko. FILE PHOTO | NMG 

Universities will be required to publish periodic financial statements as part of new rules to improve management of the institutions.
The Commission for University Education (CUE) chairman Chacha Nyaigoti Chacha said the periodic statements will ensure financial discipline at the universities.

“The universities have to periodically demonstrate that they are financially sustainable and that there are good governance and human resource management systems in place,” Prof Chacha said

The new guidelines come in the wake of growing concerns over failure by universities to pay their workers and submit statutory deductions.

The Kenya Methodist University (KeMU) has been on the spot for failure to submit statutory deductions, the same fate that has befallen the Technical University of Kenya, according to last year’s audit report by the Auditor General Edward Ouko.

KeMU is grabbling with Sh3 billion loans as well as non- payment of part-time lecturers, but the new Vice-Chancellor Prof Maurice Okoth who is one-month old at the institution has promised to address the problem.

Prof Chacha made the remarks when he unveiled the new Chief Executive Prof Mwenda Ntaragwi, who takes over from Prof David Some.

The chairman said three universities are under the close watch of the commission over financial crisis and poor governance structures.

He disclosed that all academic programmes offered in universities are being re-evaluated for relevance to determine whether or not they support national development agenda.

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