The Chairperson of the Public Investments Committee on Education and Governance Jack Wamboka has said that ineffective institutional leadership is the bane of Kenyan Universities.
Wamboka noted that poor leadership coupled with delayed capitation, dilapidated infrastructure and facilities and outdated administrative practices had stood in the way of Kenya’s institutions of higher learning’s quest to remain competitive both regionally and internationally.
"Poor leadership in our institutions of higher learning is really affecting their ability to remain competitive. The Ministry should adopt the approach of employing visionary leaders that can transform these institutions to be self sufficient,” Wamboka argued.The chair was speaking while meeting with Kabianga University’s Vice Chair chancellor (VC) Prof. Erick Koech.
During the year under review, Kabianga University made a loss of Kshs. 124,973,024 compared to loss of Kshs. 62,585,856 in the 2017-2018 financial year, resulting in accumulated losses of Kshs. 136,713,475 as at 30th June, 2019.
Further, the current liabilities balance of Kshs. 427,977,515 exceeded the current assets balance of Kshs.285,843,606 as at 30th June 2019 resulting in a negative working capital balance of Kshs. 142,133,909.
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The financial statements prepared on a going-concern basis, had been prepared on the assumption that the University would continue to receive support from the National Government, donors and creditors, a position that has no documentary support.
The Auditor informed the Committee Members that the University was technically insolvent
Members of the Committee called on Prof. Koech to put to proper use the 110 acres under the institution to generate income and clear the huge debt its facing rather than wholly depend on government capitation.
The VC was also directed to cut down on expenses and monitor their sustainable plan to see if the strategies inplace are producing desired results.
Members also noted with concern, the huge gaps in the audit report whereby, financial statements were not supported by necessary source documents and vouchers. Under the circumstances, the accuracy of the financial statements for the year ended 30th June, 2019 could not be confirmed.
Additionally, the Committee observed that the Institution had not addressed all the questions posed, which led to the rescheduling of the meeting .
The VC was given two weeks to rationalise with the office of the auditor general before appearing before the Committee.