Former students who owe the University of Nairobi (UoN) more than Ksh5 billion in arrears are now being tracked down by debt collectors.
UoN has asked bidders to submit applications for debt collection services as it seeks to recover debts that have left the university in dire financial straits.
Finding the former students and collecting the outstanding debts they still owe the college will be one of the debt collectors’ primary responsibilities.
Former University of Nairobi students still owed the school up to Ksh857 million as of December 2021. This is according to Nancy Gathungu, the Auditor General.
The issues, she stated, originated from UoN acting contrary to the University Regulations which require it to withhold services to student debtors.
“It (UoN) ought to withdraw any services, examination results, conferment of any degree, certificate, or award until all fees are settled.
“The law further provides that the university can institute legal recovery proceedings against students with outstanding fees and also surcharge at an interest rate to be determined by the university council,” noted the Auditor General.
Towards the end of the same year, UoN’s owed the Kenya Revenue Authority (KRA) Ksh7.2 billion.
This forced the institution to carry out financial, curriculum, and structural reforms to mitigate the financial crisis.
Vice Chancellor, Stephen Kiama, implemented a raft of leadership changes to solve the crisis.
“The UoN has been operating under a huge deficit and today we owe KRA Ksh7.2 billion which has come as a result of us not costing our services,” the VC reiterated.
