Thousands of students in public universities are learning but not paying fees, leaving their colleges reeling in debt.
The universities are also allowing the students to graduate without clearing the fee arrears running into hundreds of millions.
University of Eldoret, Egerton University and Kabianga University are some of the colleges that have been flagged by the Auditor-General Edward Ouko over increasing debts.
In his report, Mr Ouko says the universities have been unable to recover this money over the years.
‘ALARMING DEBT’
At Egerton University, former students owe the varsity Sh581 million.
Mr Ouko says the debt is alarming and a demonstration of inefficient system of student debt management.
At the University of Eldoret, students owe the college Sh186 million which has been outstanding for more than three years.
“Although the university provided for bad and doubtful debts figure of Sh13 million in accordance university policy that provides for bad and doubtful debts at a rate of 2 percent of the outstanding debts as at the end of the year, the figure appears inadequate taking into account the debtors outstanding for more than three years,” says Mr Ouko.
He went on: “Further, included in the students figure is a balance of Sh326 million comprising of non-moving debts whose supporting documents were not made available for audit review.”
Mr Ouko says the management explained that an investigation is being carried out to establish the correct status.
At Kabianga University, student fee debts stands at Sh99 million despite the varsity’s policy that students pay tuition fees and all other related charges during registration of classes.
SCAM
Last week, more than 500 students at Moi University were forced to pay fees twice in order to sit their end of semester examinations after they were lured into paying their fees to individuals working at the university’s finance department.
The victims of the scam are said to have been approached by fellow students working under instructions from unnamed top officials in the finance department.
Universities have not been able to fund their activities because of inadequate resources and have proposed a threefold increment of student fees, from Sh16,000 to Sh48,000 per year.