Education Cabinet Secretary (CS) Ezekiel Machogu has asked the Kenya Revenue Authority (KRA) to cancel Sh62 billion owed by universities.
He said the Ministry of Education was negotiating with its counterpart in the Ministry of Finance to find a compromise that would see KRA write off the tax debt owed by the country’s universities.
According to Machogu, it will be difficult for the institutions to repay the debt given the financial shortfall they are facing.
He blamed the high debt on the poor university funding system put in place by his predecessors.
“The Sh62 billion that has accumulated over the years is a result of the old system,” Machogu said.
Speaking in Naivasha after a hearing by the Senate Committee on Education, Machogu said the new university funding system put in place by his ministry will ensure that this does not happen again as it will solve the financial challenges that have existed for the past five years.
Machogu also said his ministry has changed the distribution system for public schools, as they will receive 50, 30 and 20 percent of the financial year in the first, second and third terms respectively.