The University of Nairobi (UoN) has now resorted to using debt collectors to track former students who owe it over Ksh5 billion in arrears.
UoN has asked bidders to apply for debt collection services as it looks to recover debts which have financially crippled the institution.
One of the key roles of the debt collectors will be to track down the former students and recover the arrears they still owe the institution.
As of December 2021, former University of Nairobi students owed the institution up to Ksh857 million. This is according to the Auditor General, Nancy Gathungu.
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.