Graduates who owe Moi University more than half a billion shillings in fee arrears risk being listed with the Credit Reference Bureaus (CRB) if the institution implements recommendations of Parliament.
Public Investments Committee (PIC) says past students owe the university long outstanding fee balances amounting to Sh547,916,477 as at June 30, 2015.
“This situation may be indicative of the University’s weak debt management system which tends to undermine its liquidity position,” Adan Keynan, who chairs the committee said in the 21st report of the audited books of accounts of State corporations tabled in Parliament before the House took recess after the end of its term.
The committee said the students debts had remained uncollected from the 2009/10 financial year with the amount for the year to June 2015 alone standing at Sh143,403,095.
“The committee recommends that the vice chancellor forward the list of fees defaulters for listing by the Credit Reference Bureau,” Mr Keynan said.
PIC wants the university chancellor, Prof Mirriam Were, to enforcement policies put in place to ensure non-accumulation of debts and recovery of the outstanding debts.
“The committee recommends that the vice-chancellor collaborates with Kenya Revenue Authority (KRA) to trace university graduates with debts, partner with other institutions like National Hospital Insurance Fund (NHIF), National Social Security Fund (NSSF), National Transport Safety Authority (NTSA), Teachers Service Commission (TSC) and government Ministries with large databases of Kenyans who are gainfully employed and use of debt collection agencies to net defaulters.”
The committee also wants the university management to review all debts in terms of recoverability and debt policy in order to make provisions in its accounts where necessary and seek approval for write-off of uncollectable debts.