Nairobi News

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Cash-strapped city university fights to stay afloat

The Catholic University of Eastern Africa (CUEA) is facing a cash crunch, which has led to salary delays and disruption of services, for the last three months.

Following the development, the university has developed a new format in paying its workers’ salaries as it struggles financially, which has seen net salaries paid to workers in ratios.

Vice-chancellor Prof Justus Mbae has since warned that the disruption in salary payments and other benefits may be extended to July and the institution hopes to attract more students in coming months for more revenue.

“I write to you with reference to my earlier message on salary disruption dated 27 April 2018 and 25 May 2018 respectively, as we embark on transformation plan,” reads a communique to all staff dated June 28 by Vice-chancellor Prof Justus Mbae.

PAYMENT FORMAT

He goes on: “I wish to share the following payment format for June salary; taxable income 0-Sh49,000-100 per cent of net pay, taxable income Sh50,000-Sh99,000 – 100 per cent of net pay, taxable income Sh100,000-Sh149,000 – 100 per cent of net pay , taxable income Sh150,000-Sh200,000 – 25 per cent of net pay and taxable income Sh200,000 and above – 20 per cent of net pay.”

The payment schedule is for the month of June.

However, Prof Mbae said, all staff banks and SACCO loan remittance, payroll recoveries and other statutory deductions will be paid in full through the period.

According to Prof Mbae, the University has recorded decrease in both new student enrollment and the registration of continuing students therefore affecting revenue.

Prof Mbae has since asked staff at the institution work hard towards launching diploma programmes and short courses in July to stabilize finances prior to the August and September intake.

The university council has also authorised the management to sell designated land in Karen and use the capital raised as an injection into the university to manage liabilities and meet obligations.

SHUT DOWN CAMPUSES

Last year in October, the university shut down its campuses in Nairobi city centre and Kisumu. It later put the premises for Kisumu campus on sale.

The University has been struggling since 2016 after it emerged that it lost at least Sh400 million to former officials.

The 34-year old institution owned by the Catholic Church sits on over 100 acres in the plush Karen neighbourhood in Nairobi.

Last year, the Commission for University Education gave it one year to put its house in order after it emerged that it was indebted to the tune of Sh1.5 billion.