Kenyatta University frozen bank accounts causes fee payment confusion

kenyatta university bank account frozen by kra due to tax issues

Kenyatta University (KU) is now facing a financial crisis after all its bank accounts were frozen by Kenya Revenue Authority (KRA) for failing to remit employee deductions amounting to about Kenya Shilling 2 billion. 

kenyatta university bank account frozen by kra due to tax issues
Kenyatta University main gate/Photo

Why Kenyatta University bank accounts were frozen 

KRA is accusing Kenyatta University of collecting statutory deductions from its employees and not submitting them.  

KRA statutory deductions include PAYE, personal relief, NSSF, NHIF, NITA, and HELB.  

Employers are required by law to deduct the statutory deductions from their monthly salary and remit to KRA or relevant bodies. 

However, Kenyatta University failed to submit the deductions. 

Kenyatta University side of the story 

Kenyatta University has remained silent over the state of its bank accounts. No statement has been released by the institution on the matter.  

The situation has left new students who are expected to join the University on 20th September confused on whether they should pay school fees or wait for the matter to be resolved. 

University Financial crisis  

Most public universities in Kenya are currently facing a financial crisis that has been worsened by the pandemic. They have been statements issued by various Universities in Kenya like the University of Nairobi, Moi University, etc. complaining that the amount of money they receive from the government for government-sponsored student’s capitation is not enough and the only option they have left to keep the institution running if treasury does not increase, is to increase school fees.  

We are following up about Kenyatta University frozen bank accounts for more information. You can subscribe to our updates to be notified of the updates. 

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