Author Topic: KU Is Broke? (Read 4149 times)

vooke · « **on:** October 23, 2018, 10:41:42 PM »

I can't make much sense of this article other than KU is unable to meet its Kung Fu obligations and therefore needs bailing out. But they have so much vast land and with explosion of private Unis they are not likely to expand.

https://www.businessdailyafrica.com/economy/Parliament-directs-Treasury-to-bail-KU-out-of-Chinese-loan/3946234-4815796-y9xnloz/index.html

RVtitem · « **Reply #1 on:** October 23, 2018, 11:07:54 PM »

Quote from: vooke on October 23, 2018, 10:41:42 PM

I can't make much sense of this article other than KU is unable to meet its Kung Fu obligations and therefore needs bailing out. But they have so much vast land and with explosion of private Unis they are not likely to expand.

https://www.businessdailyafrica.com/economy/Parliament-directs-Treasury-to-bail-KU-out-of-Chinese-loan/3946234-4815796-y9xnloz/index.html

They should let it go down with Chinese debt.

Kenya is a capitalist system where only the best are allowed to stand.

What collateral was used to borrow??

patel · « **Reply #2 on:** October 24, 2018, 01:45:14 AM »

Damn....These damn loans.

Kadudu · « **Reply #3 on:** October 24, 2018, 01:17:15 PM »

Quote from: RVtitem on October 23, 2018, 11:07:54 PM

They should let it go down with Chinese debt.

Kenya is a capitalist system where only the best are allowed to stand.

What collateral was used to borrow??

No collateral. Problem in Kenya and Jaindi Kisero of Daily Nation has written several articles on this issue, is that parastatal heads and even CSs are busy scheming up projects with the Chinese without any input from Treasury. Such a project was the baby of the famed former VC Olive Mugenda. Now one can see what dilemma she has caused. The whole thing is up 3 years and no equipment, just buildings which have cost a fortune. Interest on the loan is to be paid this year, we no income in sight for the project.

gout · « **Reply #4 on:** October 24, 2018, 01:40:02 PM »

mugenda and crew got her billions we need to clean her shat

KenyanPlato · « **Reply #5 on:** October 24, 2018, 03:27:39 PM »

I remember thinking that the infrastructure in ku was phenomenal. I wondered what was the secret. I thought mugenda the genius kumbe it was theft and just grandiose nonsense...kenya wants to climb the trees from top

GeeMail · « **Reply #6 on:** October 24, 2018, 09:01:55 PM »

What post does Mugenda hold now? Has she been rewarded for her Kenyanness?

RV Pundit · « **Reply #7 on:** October 25, 2018, 12:39:45 PM »

They made a bet o a future with enrollment of more and more students. Nobody saw Matiangi and gov TIVET move. I cn't blame them.

KenyanPlato · « **Reply #8 on:** October 25, 2018, 01:31:05 PM »

Quote from: RV Pundit on October 25, 2018, 12:39:45 PM

They made a bet o a future with enrollment of more and more students. Nobody saw Matiangi and gov TIVET move. I cn't blame them.

This move was never sustainable. The literally put the cart before the horse. I blame policy makers for not reigning them in. By The way will TIVEt work? I know thag idiot called kibaki ru8ned all the infrastructure for polytechs

RV Pundit · « **Reply #9 on:** October 25, 2018, 01:49:55 PM »

Maybe they over-leverage - but universities had no idea that Kibaki expansion of universities was going to come to an end. KU basically was being handed polythenics and colleges every week to manage - and they made huge fortunes.

Now Jubilee come in and they institute a "Mass failure" so people can stop rushing to universities and focus on TIVET. My sister works at TIVET and she tells me the push is real - there are sending thousands of students to TIVET - but still a long way to get to target of 500K students - now they must be doing 10% of that.

I think TIVET is a smart move - this is what propelled Germany and many countries.

So I think Kibaki did great to expand universities and Jubilee is also doing great to expand TIVET.

KU should simply invest in TIVET - nothing stop universities from offering certificates and diploma courses of the technical kind. Gov is funding each student to tune of 70K (for student)- and I think 200K for the college or more than that per annum. The number that you can enroll is limitess..even an E student can be admitted.

Quote from: KenyanPlato on October 25, 2018, 01:31:05 PM

This move was never sustainable. The literally put the cart before the horse. I blame policy makers for not reigning them in. By The way will TIVEt work? I know thag idiot called kibaki ru8ned all the infrastructure for polytechs

gout · « **Reply #10 on:** October 26, 2018, 02:50:38 PM »

This worsens the unfavorable debt position we are in. Once the true picture of the shady loans taken by thieves in these parastatals Kenyans and Treasury will smell the coffee.

Kadudu · « **Reply #11 on:** October 29, 2018, 11:36:24 AM »

Uhuru has nominated her to the Justice Service Commission. She has yet to be sworn in as there is a standoff between Uhuru and the CJ.

Quote from: GeeMail on October 24, 2018, 09:01:55 PM

What post does Mugenda hold now? Has she been rewarded for her Kenyanness?

GeeMail · « **Reply #12 on:** October 29, 2018, 11:57:50 AM »

Means if she gets nominated to JSC she earns automatic immunity from prosecution over KU scams?

Kadudu · « **Reply #13 on:** October 29, 2018, 12:43:56 PM »

No. Her immunity against the KU scams comes from SH.

Quote from: GeeMail on October 29, 2018, 11:57:50 AM

Means if she gets nominated to JSC she earns automatic immunity from prosecution over KU scams?

RV Pundit · « **Reply #14 on:** October 29, 2018, 04:06:50 PM »

When did you find her guilty? She is only guilty for overseeing a huge and impressive expansion of what used to be a teacher training college into now one of the top universities in Africa. They need to make her a PS or CS or something bigger than JSC member.

Kadudu · « **Reply #15 on:** October 29, 2018, 04:34:52 PM »

Pundit, KU's finances are in doldrums. KU built a hospital and now the buildings completed 3 years and still to be equiped. KU is to start paying interest to the Chinese loan this year for the hospital and no income coming from that side. Olive Mugenda at that time VC speculated the hospital would be able to service the loan through payments from patients and medical insurance. Now no patient in sight and the first interest is due. We should not even mention payment of the principal and the need for more loans to equip the hospital.
That is why I quoted before "hope is not an economic policy". KU will have to be bailed out by the already cash strapped Treasury. That is the price of Mugenda's expansion.

Quote from: RV Pundit on October 29, 2018, 04:06:50 PM

When did you find her guilty? She is only guilty for overseeing a huge and impressive expansion of what used to be a teacher training college into now one of the top universities in Africa. They need to make her a PS or CS or something bigger than JSC member.

RV Pundit · « **Reply #16 on:** October 29, 2018, 04:40:06 PM »

Everyone knows what Matiangi did to universities. The funds have dried up. Private universities are even in worse form. All students who get C+ are admitted through JAB.

Mugenda bought lots of building in towns. There are two options available for his succesor. He can sell some of those buildings including an hotel in Mombasa - and use it to ran the hospital or Treasury should bail them. I am in favour of Treasury bailing them out. This hospital will serve public interest...beside helping in churning out more doctors.

Maybe there was fraud or corruption involved but surely until evidence is tendered - we can just classify this as a wrong bet on the future. She is only guilty of daring! Daring to start a medical school in KU that was best known for producing high school teachers.

Quote from: Kadudu on October 29, 2018, 04:34:52 PM

Pundit, KU's finances are in doldrums. KU built a hospital and now the buildings completed 3 years and still to be equiped. KU is to start paying interest to the Chinese loan this year for the hospital and no income coming from that side. Olive Mugenda at that time VC speculated the hospital would be able to service the loan through payments from patients and medical insurance. Now no patient in sight and the first interest is due. We should not even mention payment of the principal and the need for more loans to equip the hospital.
That is why I quoted before "hope is not an economic policy". KU will have to be bailed out by the already cash strapped Treasury. That is the price of Mugenda's expansion.

GeeMail · « **Reply #17 on:** October 31, 2018, 05:37:58 PM »

If everyone did the daring thing and acquired some Eurobond to build a road in Kongowear, a sugarcane factory in Maragua, a milk cooling plant in Garissa

and asked Treasury to bail them out, where would we be? Is it daring or foolhardy?

patel · « **Reply #18 on:** October 31, 2018, 09:18:52 PM »

She even built a mall in KU ????????????. Maajabu kabsa kabsaaa but what I want to know is how was this lady able to get these loans from China? Why are the county governors going for the cheap Chinese loans to develop their counties?

vooke · « **Reply #19 on:** November 01, 2018, 07:12:46 AM »

This the perfect textbook illustration of a White Elephant.
100,000 Square feet of letable space. Only One unit is occupied - approx 1,500sqft.
It was opened in Feb 2016.
Does anyone know how much it cost? pic.twitter.com/cOSZWAmczG
— Mungai Kihanya (@mungaikihanya) October 31, 2018

?s=21

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Author Topic: KU Is Broke? (Read 4149 times)