A protracted tax battled between Kenyatta University and Kenya Revenue Authority has now led to the freezing of bank accounts of one of the leading institutions of higher learning in the country.
As reported by Nation on Sunday 12, Kenyatta University has been in a tax battle with KRA for months now over Ksh 2 billion that KRA claims is owed to them by the learning institution.
The Ksh 2 billion is said to be .part of the 5.6 billion that the institution owes its suppliers as well.
It has also been reported that last month Kenyatta University paid its staff in checks that bounced depicting the worsening financial situation of the institution.
Auditor General Nancy Gathungu, said in the last report that Kenyatta University is in serious financial problems detailing that “current liabilities of Ksh6.38 billion as of June 30, 2020, exceeded the current assets of Ksh1.58 billion resulting in a negative working capital of Ksh4.8 billion.”
Other academic institutions that have found themselves in financial debts have blamed low number of students enrolling for University courses, low government funding and misappropriation of funds.
The other institutions include Moi University and The University of Nairobi.
