Kenyatta University bank accounts have been frozen by the Kenya Revenue Authority for allegedly failing to clear taxes amounting to billions of shillings.
The move by the taxman was taken after the university failed to remit Kshs2 billion statutory deductions.
According to a 2020 audit report by Auditor General Nancy Gathungu the money is part of 5.6 billion that the university owes the government.
Gathungu noted that the financial crisis at the institution was likely not to end soon if urgent positive measures are not undertaken to improve its financial position.
“The university is, therefore, technically insolvent and if no urgent positive measures are taken to improve the financial position, it may not be able to meet its mandate in future,” the Auditor General stated.
The university’s management has since appealed to KRA to lift the freeze as it seeks ways other to settle the debt.
It is alleged that the university’s situation further worsened when it had to rely on short term loans to manage it daily operations and payment of wages.
It was further revealed that the institution paid its workers last month’s salary with cheques with were rejected by banks.
This comes in the wake of financial woes among the country’s top higher learning institutions including Moi University and Nairobi University.
Last week the Ethics and Anti-Corruption Commission launched an investigations into claims of fraud and embezzlement of funds in Moi University.
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