The Catholic University of Eastern Africa is facing a cash crunch that has led to salary delays for its workers in the last three months, signalling tough times facing higher learning institutions due to decline in number of students.
The university has since developed a new format of paying its workers’ salaries as it struggles financially, which has seen net salaries paid to workers in ratio.
Vice-chancellor Prof Justus Mbae has since warned that the disruption in salary payments and other benefits may be extended to this month.
The institution hopes to attract more students in coming months for more revenue.
“I write to you with reference to my earlier message on salary disruption dated 27 April 2018 and 25 May 2018 respectively, as we embark on transformation plan,” reads a communication to all staff dated June 28 by Prof Mbae.
Prof Mbae said all staff banks and sacco loan remittances, payroll recoveries and other statutory deductions will be paid in full through the period.
“We also advise that the finance department will not be able to meet any requests for salary advances and staff loans in this period,” says the communication.
According to Prof Mbae, the university has recorded a decrease in both new student enrolment and the registration of continuing students, affecting its revenue generation avenue.
The university council has since authorized the management to sell designated land in Karen and use the capital raised as an injection into the university to manage liabilities and meet obligations.
Last October, the university shut down its campuses in Nairobi city centre and Kisumu. It later put on sale the Kisumu campus premises.
The university has been struggling since 2016 after it emerged that it lost at least Sh400 million to former officials.
The institution owned by the Catholic Church sits on over 100 acres in the plush Karen neighbourhood in Nairobi.
Last year, it was given one year by the Commission for University Education (CUE) to put its house in order after it emerged that it has Sh1.5billion debts.