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Egerton University Vice Chancellor Prof Isaac Kibwage has accused the Universities Academic Staff Union (Uasu) – Egerton Chapter of insincerity in their push for full salaries despite the institution reeling in a massive financial crisis.

Kibwage, while giving an overview of the institution’s financial records yesterday revealed that current debt stood at Sh9.9 billion, with the government capitation unable to cover both recurrent and capital expenditure.

According to the VC, it was unfortunate that despite the unionists being granted access to the institution’s accounts records during talks to avert numerous industrial actions at the university, they opted to prosecute the matter in court.

Management operations

His remarks come weeks after he was handed a 30-day jail term for contempt of court with an alternative of Sh100,000 fine after being found guilty of defying court orders directing them to pay dons full salaries alongside council members.   

The VC revealed that the government funds Egerton Sh185 million every month and that they are able to raise an average Sh26 million in the same period through student fees which is against a payroll of Sh240 million.

“There is a deficit and thus the reason the institution has been unable to pay full salaries. We apportion some of the monies we have to manage operations of the institution and the bulk of it we pay our staff,” said Kibwage.

He said the institution has acknowledged that they owe the lecturers and workers monies in form of balances and not deductions as claimed by the unionists stating the same will be paid once the monies are available.

“We are only sharing what is available with staff as we keep the university going, we have petitioned the government to bail us out. The president had acknowledged that universities are in a financial crisis, and funds hitch which stood at 52 percent,” he added.

Kibwage disclosed that as the university tries to fill the other 48 percent from other sources, some revenue streams had been affected over a period of time including the self-sponsored students’ program after the government took over the mandate to fund students.

“The situation had been explained to the staff who were not keen on listening to the facts. They cannot get what does not exist in terms of full salary payment. Some staff want the council be disbanded but if the root cause is not addressed nothing will happen,” said Kibwage.

In his own account, the VC revealed that most of the university debts arose before the current management took over saying they are trying to keep the university afloat and that so far, they are doing well and the government is aware.

Relevant institutions

“The government is looking into the problem of universities, Egerton included, the president pronounced himself on the matter and we expect the same would be sorted out in good time,” said Kibwage.

He said that the former management had not been remitting Pay As You Earn (PAYE) and Kenya Revenue Authority dues which had accumulated to huge amounts forcing them to enter into an agreement with the relevant institutions to comply.

“We are trying to retire the old accumulated KRA debts at a rate of Sh 12 million per month plus the one which becomes due, so we are working to comply, if we pay 100 percent then the school will close down due to lack of funds,” he added.  He added: “Every month we process salaries at 100 percent and we record, but defer unpaid balances which are indicated on their pay slips. The government is aware that the balances are there but we do not have to effect full payment which is done in phases,”.