FILE PHOTO | NMG
Public universities have accumulated pending bills worth Sh19 billion on failure to remit statutory deductions such as pay-as-you-earn (PAYE), the latest report shows.
The Jomo Kenyatta University of Agriculture Technology (JKUAT) and the Technical University of Kenya come in second having not remitted Sh3.5 billion each, while Kenyatta University has a pending bill of Sh2.7 billion in unremitted statutory deductions.
Critical statutory deductions such as PAYE tax, National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF), Higher Education Loans Board (Helb), pension and sacco deductions went unpaid, the report reveals.
In May last year, the Retirement Benefits Authority (RBA) warned six public universities that they risk assets seizures after they failed to remit deductions then estimated at Sh5 billion to build workers’ retirement funds.
This has prompted many universities to delay statutory deductions such as pension, which will see thousands of retirees take home smaller retirement benefits as they miss out on the investment incomes.
