TUK blames Sh13bn debt on years of underfunding
TUK had accumulated Sh12.99 billion in pending bills as of January 31, 2025, according to a report submitted to the committee during deliberations on the winding up and liquidation of the Technical University of Kenya Staff Retirement Benefit Scheme.
Nairobi, Kenya – The Technical University of Kenya (TUK) has disclosed that its substantial debt of almost Sh13 billion is primarily due to years of underfunding and financial difficulties. During testimony to the Senate Labour Committee, the university revealed that cash flow challenges forced it to prioritize employee net salaries over statutory deductions, such as pension contributions.
As of January 31, 2025, TUK had Sh12.99 billion in unpaid bills, with Sh6.71 billion owed in statutory deductions, Sh4.39 billion in pension fund liabilities, and Sh761.1 million in Collective Bargaining Agreement arrears. The institution attributed its financial woes to insufficient government funding, limited revenue generation, and the rising number of students without proportional funding.
Additionally, the university mentioned the return of TVET diploma programs in 2015, which created a Sh979 million funding gap. TUK also revealed that around Sh39 million in pension contributions from 2009 to 2013 were deposited in a savings account but not transferred to the pension scheme, as instructed by the former Vice-Chancellor.
To tackle the issue, the government launched a recovery plan in March 2025, allocating Sh500 million for pension arrears in the 2025/26 financial year. However, TUK noted that the success of this plan relies on further funding from the National Treasury and Parliament.
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