Bad News To KU As The Govt Reveals Why It Took Over Kenyatta University Hospital
The government has revealed why it took over Kenyatta University Teaching, Research and Referral Hospital (KUTRRH) into an independent state agency.
The Treasury Cabinet Secretary Ukur Yatani has disclosed why the government decided to take over the management of KUTRRH.
According to Ukur Yatani, the government took over the running of KU teaching, research and referral hospital because the institution had defaulted on a Ksh 10 billion.
Yatani revealed the information in a statement he released on Tuesday, December 28 in response to the Parliament’s directive that demanded the referral hospital to be returned to Kenyatta university.
Yataani in a statement also revealed that the Kenyatta University Teaching, Research and Referral Hospital (KUTRRH) was constructed using an On-lent loan which the institution has since failed to settle due to financial constraints.
“The institution’s hospital was established through on-lent loan and has been taken over and is being managed by the National government to recover the loan amount after the institution was unable to settle the arrears”. Yatani revealed in the latest public debt disclosures.
Ukur Yatani further said that the conversion of the institution’s hospital into an independent state agency is aimed at recovering Ksh 11.18 billion under prevailing rates which the state borrowed from the Export-Import (EXIM) Bank of China on behalf of the University ten years ago.
Earlier September this year Kenyatta University bank accounts were frozen by the Kenya Revenue Authority over unpaid tax arrears amounting to two billion.
The taxman took action after the management of the university failed to submit their dues deductions as per the requirements. They did not comply with the requirements of the tax man.
Kenyatta University has been experiencing a financial crisis. Other than the amount which the University owe KRA, the workers and the suppliers are still owed by the institution.
By September this year, the University had a debt amounting to five point six billion shillings.
Nancy Gathungu (Auditor-General) revealed that the University is working under financial constraints and is depending on expensive loans which will lead to worse scenarios in the long run if not checked.