KeMU down but not out, board chair says on financial crisis

Kenya Methodist University sank into a financial crisis after several vehicles were taken by auctioneers over the weekend, an official has said but assured it is not in bad shape.

Auctioneers struck after 60 workers who were fired last year moved to court to demand salaries and gratuity.

BLOATED WORKFORCE

On Sunday, Board of Trustees chairman, Mr Silas Muriuki attributed the huge debts to a bloated workforce during the reign of former VCs, adding the salaries were too high.

Mr Muriuki spoke on the state of the institution at Kaing’inyo Methodist Church in Meru. This was after Methodist Church in Kenya Presiding Bishop Joseph Ntombura, who is also the KeMU Chancellor, asked him for clarifications.

A section of professionals, including former employees of the university, have attributed KeMU’s troubles to interference by the bishop.

Mr Muriuki said: “We realised that some items were bought at exaggerated prices - more than double the current rates. The board members used to draw allowances of Sh76,000 in a sitting, which was very exorbitant."

He added, however, that the KeMU management had come up with austerity measures that will see costs cut.

NO ALLOWANCES

Mr Muriuki, a former MP, also said that board and council members were forgoing allowances.

“We are only being reimbursed the cost of fuel with no allowances. In the coming week, we will seek ways for property carted away by the auctioneer to be returned. We have put in place measures to pay the Sh40 million we owe in salary arrears."

The chair said he had written to the Commission for University Education (CUE) requesting more time to implement recommendations on restructuring, a process whose deadline lapses this month.

In its inspection report, the CUE gave KeMU one year to restructure or face closure.

RECOVERY PATH

Earlier, KeMU Vice Chancellor Professor Maurice Okoth assured that the institution was on the recovery path.

“KeMU has made great strides for a total turnaround since July 2017, when new management was installed. Though KeMU is undergoing far-reaching restructuring, it is healthy, on track to better times and everything is under control. The university is committed to effecting all CUE recommendations,” Professor Okoth said.

He said while the regulator cited financial issues, the varsity was effectively performing its mandate in academics, research and community service.

EAC MP Mpuru Aburi, who also attended the service, asked Bishop Ntombura to speedily negotiate with creditors to ensure the university does not collapse.

NON-VIABLE LOANS

Meanwhile, former Vice Chancellor Prof Henry Kiriamiti is fighting the institution in court for unprocedural dismissal last year; he filed a contempt suit after he was blocked from the institution despite having a court order.

Earlier, Mr Kiriamiti blamed his ouster on his stance against the acquisition of non-viable loans.

By July last year, the university owed banks, the Kenya Revenue Authority and suppliers up to Sh3 billion and a dispute arose over the clearance of the debts.

Professor Kiriamiti said KeMU’s biggest undoing is interference with decisions of the trustee and the university council by the Chancellor.

“For instance, the BoT and the council had approved the decision to sell part of the properties but the resolution was blocked. Later, a proposal was made for a loan of up to Sh4 billion, which I could not approve,” he said.

FIRED VCs

Former KeMU Deputy Vice Chancellor, Dr Kobia Ataya, also said the university is in trouble because of issues of governance, leadership and management.

“Under the first term of the current Chancellor, the university has had three vice chancellors and the first two were dismissed in unclear circumstances. What we have in KeMU is a management crisis which has given birth to financial problems,” Dr Ataya said.

But Bishop Lawi Imathiu, who spearheaded the establishment of KeMU, defended Bishop Ntombura saying problems bedevilling the institution predate his tenure.

Since it was chartered in 2006, KeMU has had the controversial removal of three vice chancellors, starting with Professor Mutuma Mugambi in 2010. Professor Alfred Mutema followed in 2015 and Professor Kiriamiti in 2017.