FILE PHOTO | NMG
The Treasury has directed public universities to clear statutory deductions by Tuesday next week or risk sanctions that include withholding cash disbursements.
Treasury Secretary Ukur Yatani said State corporations and semi-autonomous agencies (Sagas) that include public universities have failed to give priority to paying pending bills, prompting the latest directive.
Mr Yatani said the directive also covers deductions to all sacco and staff loan deductions made by the various State entities in the latest bid to enforce compliance in payment of pending bills.
The directive is set to hit hard the cash-strapped public varsities whose pending bills that include pay-as-you-earn (PAYE) National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF), Higher Education Loans Board (Helb), pension and sacco deductions have accumulated to Sh19 billion.
“Accumulation of liabilities (pending bills) not sanctioned by law is expressly prohibited and may invite punitive actions against those responsible…”
“State corporations are required to settle by June 30, 2020, all unremitted sacco staff and loan deductions, all statutory deductions (PAYE, NSSF, NHIF and pension arrears),” Mr Yatani said in the circular to all accounting officers of State corporations and semi-autonomous agencies.
