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...
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The Technical University of Kenya (TUK) blames nearly Sh13 billion in debt, primarily from unpaid statutory deductions and pension contributions, on years of chronic underfunding.
- TUK accumulated Sh12.99 billion in pending bills as of January 31, 2025, impacting statutory deductions, pension funds, CBAs, staff claims, and contractor payments.
- The Senate Labour Committee is reviewing the university's financial situation, which stems from funding shortfalls since its transition from the Kenya Polytechnic.
- A government recovery plan includes a Sh500 million allocation for pension arrears in the 2025/26 financial year, but its full implementation depends on additional funding from the National Treasury and Parliament.
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TUK Blames Sh13bn Debt on Years of Underfunding - August 2026
Technical University of Kenya (TUK) has attributed its nearly Sh13 billion debt primarily to unpaid statutory deductions and pension contributions, blaming years of chronic underfunding. The university's financial struggles reflect a broader pattern of government entities accumulating substantial debts. South Nyanza, Chemelli, and Muhoroni sugar companies, leased to private operators, owe six sugar distributors and other businesses Sh173.58 million, prompting lawsuits against the State. Meanwhile, Nairobi City County has been identified as the country's worst-performing county in managing pending bills, with a Parliamentary Budget Office report warning this signals a potential fiscal crisis.
