UoN Sends Debt Collectors To Track Former Students.
The University of Nairobi (UoN) has now turned to debt collectors to track down former students who owe the university more than Ksh5 billion in arrears.
UoN has requested bids for debt collection services in order to recover debts that have financially crippled the institution.
One of the debt collectors’ primary responsibilities will be to locate former students and recover any outstanding debts owed to the institution.
Former University of Nairobi students owed the institution up to Ksh857 million as of December 2021. According to Nancy Gathungu, the Auditor General.
She claimed that the problems stemmed from UoN’s failure to follow University Regulations, which require it to deny 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.
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UoN owed the Kenya Revenue Authority (KRA) Ksh7.2 billion at the end of the same year.
To mitigate the financial crisis, the institution was forced to implement financial, curriculum, and structural reforms.
To address the crisis, Vice Chancellor Stephen Kiama instituted a slew of leadership changes.
“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.
UoN Sends Debt Collectors To Track Former Students
