How Knut spent teachers' millions

The Kenya National Union of Teachers spent Sh252.4 million of their members’ money on salaries in the previous financial year, its finance report reveals.

Knut, which commands a membership of over 200,000 teachers has been breathing down the government’s neck its members to get a pay rise.

The union depends on three major income source that include members’ monthly contributions, recovery of gratuity from its employees in the head offices as well as branches and rent from union headquarters building on Mfangano Lane in Nairobi.

The union spent Sh8 million on hospitalities and humanitarian assistance, while Sh6.5 million was used on educational meetings.

According to Knut Secretary- General Wilson Sossion, the union channels some of it monies towards worthy causes, such as contributing in times of calamities. He said all the funds the union receives is put to proper use.

The union dues from the Teachers Service Commission is Sh114 million each month, which translates to Sh1.4 billion annually.

Gratuity from the union employees is Sh20 million every year while rent from the headquarters is Sh15.4 million. Besides rental income, bank interests and commissions for the year, the union is exempted from tax on other incomes. 

In the breakdown of expenditure, the union officials spent Sh5.7 million on branch general meetings while training, seminars and workshops gobbled up Sh13.9 million.

Although no money was spent on World Teachers’ Day in 2012, the union spent Sh3.2 million during the following year to mark the day.

LONG-TERM LOANS

According to Mr Sossion, the union is servicing two long-term loans of Sh143 million and Sh29.5 million, respectively.

Telephone and postage cost Sh3.4 million in 2013, down from Sh4.6 million that was spent the previous year.

Cash used on registration at the branch level and announcements by the union amounted to Sh5.4 million. The union paid Sh6 million as fines and penalties, but the report did not specify their nature.

The union, according to the report, operates in three different banks. In 2013 Knut had Sh1.6 million in fixed deposit accounts, down from Sh6.8 million kept the previous year.

According to the report, the union took a bank overdraft of Sh33.5 million from a local bank. 

In addition, Sh736 million was sent to the union’s 110 branches countrywide, but there is no breakdown on how the money was spent in the report.
However, a proposal by the union’s treasurer might change this position.

“Our audited accounts are contained in this booklet and they cover financial use by the headquarters only.
“For this reason, Mr Chairman, these finances released from my office to the branches must be audited separately.

“They should be presented to the branch annual general meetings for discussion and approval as per our constitution,” Knut Treasurer Albanus Mutisya’s presentation read.

OVERSEAS ACTIVITIES

Union officials spent Sh4.9 million on overseas activities which are unspecified in the report and the annual delegates’ conference cost Sh11 million.
Mr Sossion said the union spends its resources prudently and all monies spent at the branch level are audited.

The union spent Sh7 million on legal services, while medical expenses gobbled up Sh6 million.

According to the financial report prepared by the union’s treasurer, Sh32.5 million was spent as terminal benefits and tokens and Sh10 million on consultations, briefing and advocacy.

The union says Sh8 million was spent on school campaigns and mobilisation while Sh7 million went to gender activities.

“We have the most vibrant presence in schools and our gender desk is very active. We just concluded an assessment study on gender-related problems in schools.

“Currently, our research department is working on trends of the needs of teachers in Kenya. The report would be ready by March. You can see the transparency in our union,” Mr Sossion said.

The report shows Sh4 million was spent on contingencies, while Sh4 million was spent on teachers magazine, newsletter, calendars, charts and brochures.
Some Sh837.9 million was collected from teachers subscribed to the union in the last financial year.