HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"id": 1562654,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562654/?format=api",
"text_counter": 93,
"type": "speech",
"speaker_name": "Hon. Julius Migos Ogamba",
"speaker_title": "The Cabinet Secretary for Education",
"speaker": null,
"content": " Thank you, Mr. Speaker, Sir. On this one, please allow me to read, because it includes figures that are specific to TUK. However, where it is a general response I shall paraphrase. Mr. Speaker, Sir, the award of Charter to the Technical University of Kenya as a full-fledged university was done on 15th January, 2013. Since that time, TUK has operated with chronic funding shortfalls. The monthly revenue is approximately Kshs207 million, including Kshs63 million that is given to them through capitation. This falls short of the monthly expenditure of Kshs314 million, which includes a wage bill of Kshs272 million, which has not been met, contributing to a debt of Kshs12.9 billion, inclusive of Collective Bargaining Agreement (CBA's) arrears of the cycle of 2017 to 2021 Mr. Speaker, Sir, because of these cash flow challenges, the university then resorted to paying net salary to all staff and was unable to pay or remit any statutory deductions, that is, pensions, payee and housing levy or any third-party deductions, that is, union dues, bank loans, Savings and Credit Cooperative Organizations (SACCOs), welfare, and insurance premiums. These challenges led to industrial action by staff of the university, as indicated in the Question. Mr. Speaker, Sir, we have annexed Table Two, that shows the particularization of the debt, including what is due to contractors, what is pending to pension, which is Kshs4.3 billion, third-party funds, statutory deductions, banks, SACCOs, insurance, CBA arrears, staff claims, all totaling to Kshs2.9 billion. To overcome these challenges, the Ministry of Education, in conjunction with TUK, came up with a recovery plan, which included the following measures- There was an agreement that the Government will give a direct support of Kshs145 million for the period of January, 2025 through to 30th June, 2025, to ensure that staff salaries are paid in gross and on time. We also agreed to offer conditional grants and enhanced capitation. The Ministry of Education will continue to channel conditional grants to bridge the budget gap with phased allocations over the next Financial Years from 2025/2026 to 2031/2032, to cover gross salaries and enable the timely remittance of the statutory deductions. We came up with a structured plan of sorting out that debt. TUK has also put in place a recovery strategy anchored on three areas. They are going to- (i) increase student enrollment; (ii) implement cost-cutting measures, including staff rightsizing and also organizational restructure; and, (iii) Ensure revenue enhancement, as indicated. Table Three there indicates the pending bills payment plan that runs from 2025 all the way to 2031. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}