Kenyatta University has seen all its bank accounts frozen by Kenya Revenue Authority (KRA) due to tax arrears amounting to Ksh 2 billion.
According to the Nation, the move by KRA was to force the institution to settle the arrears with them. KU is currently locked in pending paying totaling to over 5 billion to settle supplies.
Recently, KU run into more trouble when cheques they had issued their staff bounced due to the ongoing legal battle with the taxman.
- Three fake KRA employees released on Ksh 100K cash bail
- James Mburu’s term as KRA Commissioner extended to five years
- Keroche Breweries ordered to pay Ksh 100M to KRA
A report by Auditor General Nancy Gathungu, the situation at KU is dire and that something needs to be done soon or else it will be unable to meet some of its obligations in future.
Nancy continued by noting that the institution will require short team financing to maintain daily operations even though the deficit has gone up from Ksh 4.5 million in 2019 to Ksh 5.8 million in 2020.
Other institutions in the country going through the same problems include University of Nairobi who have attributed their woes to mismanagement, low number of students and inadequate financing from the government.
University of Nairobi made of number of changes in management at it looks forward to turn around the financial situation.