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Economy

Regulator says broke Inoorero to close in 2017

MKU bought the Inoorero tower in Nairobi’s Parklands area for Sh380 million. PHOTO | FILE
MKU bought the Inoorero tower in Nairobi’s Parklands area for Sh380 million. PHOTO | FILE  

The Commission for University Education (CUE) has granted bankrupt Inoorero University owners a two-year period to enable its continuing students to finish their programmes.

The regulator said the decision was arrived at in the interest of the students who had expressed concern over their predicament if the institution was closed down before they complete their studies.

Professor David Some, CUE secretary, on Thursday said there would be no extension or intake of new students as the university failed to prove that it has supporting infrastructure to accommodate students after its host building was sold to Mount Kenya University.

“The university has become insolvent and we have only offered the two years as teach out programmes and then subsequently lead to its closure,” Prof Some told the Business Daily in an interview.

Trouble at the university started last year when a local lender advertised its eight-storey campus building in Parklands, Nairobi indicating it was up for auction after it failed to service a multi-million shilling loan it had borrowed five years back to fund its expansion.

This saw Mount Kenya University successfully bid and buy the building for Sh380 million.

MKU has already taken over the building while International University of Professional Studies- Inoorero’s new name after rebranding-students occupy a section of the fourth floor that accommodates degree students.

Inoorero is owned by Francis Nyammo who was associated with the Kenya Finance Bank that collapsed in the early 1990s.

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