Plot to have KRA collect public varsities fees – Weekly Citizen

The worrying financial crisis in the education sector that has forced government to toy with the idea of closing down cashstrapped public universities could also be used as a leeway to have Kenya Revenue Authority take over the fees collections from public universities students.
To be enjoined in the emerging saga is the Higher Education Loans Board. It has been suggested that Helb be turned into an independent authority to be liaising with KRA.

The move is aimed at instituting checks and balances in the manner in which public universities manage their accounts and end one-man decision-making syndrome in universities.
Weekly Citizen has learnt that the government is contemplating to have KRA collect tuition fee for all public universities after merging of the institutions that is now generating a lot of heat among industry players.
Reports indicate that some institutions were not declaring all the money collected from students and instead, the VCs diverted it to private accounts. Others even operate secret accounts with suspicious transactions.
Recently, the Auditor-General, Edward Ouko, in his report revealed that most universities are technically insolvent and unable to meet their financial obligations.
Ironically, top Kenyan universities including University of Nairobi, Jomo Kenyatta University of Agriculture and Technology are among those listed as facing serious financial upheavals.
Also in the red are Technical University of Kenya, Laikipia University, Machakos University College, Masinde Muliro University, Multimedia University, Murang’a University, Embu University, Pwani University, and University of Eldoret among others.

According to the latest report tabled in the parliament, University of Nairobi is broke and cannot meet its financial obligations unless it receives support from the government and other lenders.
UoN’s financial statement as of June 21 2018 reflects current liabilities of Sh5.7 billion, while assests stand at Sh4.2 billion, resulting in negative working capital of Sh1.4 billion.
Ouko said in his report  that the UoN was unable to remit Paye (Pay As You Earn) of Sh282 million, NSSF Sh3 million, NHIF Sh10 million, Chuna Sacco Sh204 million and Helb Sh1.5 billion.
The grave cash shortfalls have rendered universities unable to make statutory payments to the KRA and the pension and health schemes despite making deductions from employees. If KRA is allowed to receive fees payments, the government expects it to deduct monies meant for its institutions including KRA itself.
The financial distress has also left the universities with a string of stalled multibillion shilling construction works, including new lecture rooms, office blocks and hostels despite the fact that some were commissioned years ago.
In 2016 the government ordered a special investigation into financial mismanagement at several public universities.
While issuing the order, the then Education cabinet secretary Fred Matiang’i noted the move was prompted by an earlier audit that indicated that resources being allocated to universities are not being put into proper use.
Education cabinet secretary George Magoha is out full throttle to weed out rampant corruption in public universities.
It is against such dubious acts that the government is now working on a scheme to have KRA take over the fee collection for all government universities.
The implementation of such a scheme would mean that all government universities bank accounts would be closed since all money from students and donors will go directly to KRA accounts.