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Go Back to the List July 04, 2018
University staff union threatens to sue over deductions

Kenya’s Universities Academic Staff Union (UASU) has threatened to go to court if the ministry of education does not take immediate action against the higher learning institutions in the country that are reported to be deducting from their employees’ salaries illegally without remitting deductions to the relevant institutions.

UASU Secretary-General Constantine Wasonga told University World News the union has petitioned the National Assembly education committee, Senate education committee and cabinet secretaries of National Treasury and Education to take immediate action over the audit report findings. Failure to do so would result in UASU proceeding to court to press for action, he said.

“The ministry of education and the others we have petitioned have 14 days, effective from June 27 since the petition was filed, to take necessary action,” said Wasonga.

Last month the ministry of education released an audit report showing that some public universities in the country were deducting billions of shillings from their employees' salaries and not regularly remitting the money to relevant agencies like the Kenya Revenue Authority, National Social Security Fund, National Hospital Insurance Fund, retirement benefit schemes and co-operative societies.

The amount the institutions have been deducting illegally from the employees’ salaries is alleged to total approximately US$100 million.

The report said the deductions were either not remitted to required institutions or were not remitted within the specified time frame.

“The universities have been withholding the money illegally and spending it elsewhere at the expense of their staff,” said the report.

Kenya’s Education Cabinet Secretary Amina Mohamed told University World News the findings have been forwarded to the relevant authorities for investigation and action would be taken thereafter, based on their recommendations.

“Investigations are being conducted by the Ethics and Anti-Corruption Commission, the Office of the Auditor-General and the Directorate of Criminal Investigations based on our audit report findings to establish whether these universities are illegally holding or spending the money deducted from their staff and which cannot be accounted for,” said Mohamed.

Wasonga said that the ministry’s report was ordered by the cabinet secretary following an earlier petition by UASU over the mismanagement of funds by public universities.

According to the audit report, as of 30 June up to seven public universities – the University of Nairobi, Moi University, Egerton University, Kenyatta University, Technical University of Kenya, Kisii University and Murang'a University of Technology – have defaulted in remitting about US$4.81 million in statutory loans and members' deductions.

The audit report also says 10 universities (the University of Nairobi, Egerton University, Kenyatta University, Technical University of Kenya, Murang'a University of Technology, Multimedia University of Kenya, Rongo University, Maasai Mara University, Kaimosi Friends University College and Taita Taveta University) have defaulted on pay as you earn (PAYE) remittances amounting to US$26.3 million which are likely to lead to penalties by the Kenya Revenue Authority for failure to file tax returns.

The report lists five universities (Technical University of Kenya, Egerton University, Maasai Mara University, Multimedia University of Kenya and Kaimosi Friends University College) as having defaulted on remittances to the National Health Insurance Fund (NHIF) by an amount of US$430,000, while 26 universities have defaulted on remittances of pensions for their employees amounting to US$45.5 million.

Wasonga noted that already some university staff members' property had been auctioned for failure to service their loans while others were experiencing challenges in accessing basic services such as NHIF due to the failure by the institutions to remit their monthly deductions.
 

 

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Written by Christabel Ligami,
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