Maseno University is one of the institutions of prominence in higher learning in Kenya, currently embroiled in both governance and huge financial challenges. The university has been without a substantive Chancellor for over five years and serious financial plethora, raising concern on the stability and future of the institution.
Governance Crisis: No Chancellor for Five Years
Background
The university has not had a substantive chancellor since 6th January 2019, when the term for the former CEO of Safaricom, Michael Joseph, came to an end. Despite recommendations from the university senate, this position is yet to be filled, leaving it without a very key leadership figure.
Audit Findings
The Auditor General Nancy Gathungu also brought out the issue of the delayed appointment of a new chancellor in a recent review. According to the audit, a special Senate meeting on 23 March 2022 shortlisted five nominees for the position of Chancellor but these recommendations lay idle by the State Department for University Education and Research.
Implications
However, the inability of the university to confer degrees and diplomas has cast doubt on it’s programs. The audit faulted the institution for a lack of this top official, saying that it undermines the effectiveness of governance.
Financial Turmoil: Budget Deficits and Insolvency
Budget Deficit and Liabilities
Maseno University is at the very center of a financial crisis, having spent Ksh 560 million over the budget. In the year under review alone, the university overspent its budget by Ksh 204 million. Its liabilities stand at Ksh 569 million as opposed to current assets, which are standing at Ksh 436 million, thus translating to a negative working capital of Ksh 133 million.
Cash Flow Issues
It emerged that the university had failed to clear debts amounting to Ksh 104 million, of which Ksh 72 million had been owed for over 60 days, attracting penalties and litigation costs. In addition, the university mismanaged statutory deductions, which led to the late remission of PAYE Taxes and withholding taxes in total disregard for the law.
Dormant Accounts and Mismanagement
The audit also raised red flags over several dormant accounts with Ksh 1.3 million, which continued to attract avoidable bank charges. Also, the wage expenditure of the university, to the tune of a high percentage of its own revenue, violates Public Finance Management regulations that fix the wage expenditure ceiling at 35 percent of revenue.
Ethnic Composition Concerns
Employment Diversity
The audit put into question the university’s non-compliance with the NCIC Act, 2008. While the Act wants public institutions to ensure ethnic diversity among the employees, Maseno University had, as of 30th June 2023, 741 out of 1,143 workers who were from the Luo community, therefore going above the one-third ceiling set by the NCIC Act.