Top public university in crisis after bank accounts frozen

juma chrispinus

July 6, 2018 10:49 AM

The accounts have been frozen over Sh246 million debt.

Njoro-based Egerton University has been plunged into a financial crisis after the Commissioner for Cooperative Development’s decision to freeze the institution’s account.

The decision by the Cooperative was informed by the institution’s mistake to hold on the arrears of its workers amounting to Sh246 million, the Standard reported on Friday.

Mrs. Mary Mungai, the Commissioner for Cooperative Development, said that the university has not been remitting contributions deducted from employees since January.

Details emerged that showed the money deducted from workers to repay loans had also not been remitted to Egerton Savings and Cooperative Society.

ALSO READ: 3 Kenyan universities close down campuses

Egerton University Vice Chancellor Prof. Rose Monya on Friday confirmed the freezing of the accounts adding that the issue was being sorted out. She, however, downplayed claims that there was a crisis at the university saying “everything was on going on well.”

“I’m not aware of any crisis. Yes, we had a problem with the cooperative society but that has been sorted out,” she said as quoted by the local daily.

Three Campuses shut

Meanwhile, panic has gripped Trans Nzoia County after the successive closure of three universities - Kisii University, Mt Kenya University (MKU) and Moi University Kitale campuses.

Kisii has had its Kitale campuses in Trans Nzoia relocated to Kapenguria in the neighboring West Pokot County while students at MKU campus have been moved to Eldoret campus in Uasin Gishu County.

Moi University’s Kitale Campus has also ordered students at the facility to Eldoret town-based West Campus.

The three universities have decried low enrolment and high operational cost as the factors that have pushed the administrations to close the campuses.

In the recent past both public and private universities have decried financial issues. The Catholic University of East and Central Africa is equally facing challenges over a loss of Sh400 million.

juma chrispinus