There is academic shock in the country after it emerged that The university of Nairobi (UoN) is broke and as a result unable to meet its financial obligations.
Reports tabled in Parliament indicate that the university is therefore depending on the government, lenders and well wishers to continue its functions.
Joining the list of financially crippled institutions includes Multimedia University (MMU) which is now also depending on creditors, bankers and government support.
UoN’s financial statement indicate that the institution’s current liabilities stand at Sh5.7 billion while assets stand at Sh4.2 billion.
That implies that the university is operating at a negative capital of Sh1.4 billion.
According to the report, the university management attributed the debts to a decline in capitation from the parent ministry, a decline in student enrolment in Module 2, strikes by the academic staff and the prolonged presidential election, which led to the university’s closure.