Members of Parliament have questioned the Commission for University Education (CUE) over its failure to recover Sh1.03 billion in unpaid fees from universities, some of which date back more than eight years.
Appearing before the National Assembly’s Public Investment Committee on Governance and Education, CUE chief executive Mike Kuria revealed that six top universities account for Sh750 million of the unpaid quality assurance charges.
The University of Nairobi and Kenyatta University owe the highest amounts at Sh210 million and Sh205 million, respectively.
Other universities with pending balances include Moi University (Sh123 million), JKUAT (Sh92 million), and Egerton and Maseno universities (Sh56 million each).
"The listed universities are facing cash flow challenges," Kuria said, adding that reconciliations have been conducted and some institutions have submitted payment plans.
He said some universities have made partial payments. "Kisii University has paid Sh30 million, Maseno University (Sh8 million), and Mt Kenya University (Sh53.5 million)," Kuria told the committee.
To address the issue, CUE has restructured its information system to limit access to services.
"We have configured the system in such a way that the universities that fail to pay their outstanding receivables cannot get services from CUE unless they come to us and agree on a payment plan," he said.
However, Auditor-General Nancy Gathungu expressed concern over the commission’s debt collection efforts.
She said that although the financial records show receivables amounting to over Sh1 billion, there is no evidence of an effective recovery plan.
"Included in the balance is accrued dues of Sh2,44,922, which include rental income balance of Sh1,830,000 due from the National Biosafety Authority that has been outstanding since 2018," she noted.
Gathungu also highlighted the lack of provisions for doubtful debts in the financial reports.
"In the circumstances, the accuracy, recoverability, and fair statements of receivables from exchange transactions balance of Sh1,032,348,350 could not be confirmed," she said.
Committee Vice Chair Antony Kibagendi pressed for answers on measures to prevent further accumulation of debt.
"What are you doing to ensure debts do not continue to grow?" he asked.
In his response, Kuria said the commission has visited all universities to discuss debt settlements.
Some institutions have complied, while others continue to face delays due to financial constraints or are requesting adjustments for previous billing years.
Kuria also told the MPs that some universities are still requesting credit notes for services billed in 2014/15 and 2015/16, further complicating the recovery process.
The committee urged CUE to strengthen its internal systems and ensure that similar financial backlogs do not occur in the future.