- University of Nairobi had written to Credit Reference Bureaus requesting them to blacklist students who had failed to complete fees arrears
- The bureaus however stated they could not help university recover the over KSh 200 million arrears
- Metropol CRB boss said it would be difficult to help university because its core mandates did not include giving goods and services on credit
- The UoN management threatened to publish names of over 500 graduates who had completed studies but failed to pay for training services
Attempts by University of Nairobi (UoN) seeking to have Credit Reference Bureau (CRB) blacklist privately sponsored students who failed to clear fees arrears has flopped.
The University had forwarded names of students who had failed to complete fee payment after winding up their studies to the dreaded CRB hoping it would oblige to help recover KSh 200 million in fees arrears.
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University of Nairobi had requested Credit Reference Bureaus to blackslist over 500 students who had completed studies but refused to clear fees arrears. Photo: UGC.
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Isaac Mbeche, deputy vice chancellor had on Monday, December 10, said had warned 500 graduates who had not paid for services they utilised would have their names published in national newspapers and forwarded for blacklisting to the bureau.
However, Sam Omukoko MD Metropol a bureau licensed by Central Bank of Kenya (CBK) to credit referencing services said the university's request was inadmissible.
He argued the University had gone beyond its mandate by providing goods and services on credit and there was no way the bureau would come in to help.
"The list from the University will not be accepted. Their core business is not to provide goods and services on credit like other financial institutions," said Omukoko.
The move was a desperate attempt by UoN to counter a cash crunch following a drop in student enrollment.
Metropol CRB Managing Director Sam Omukoko said move would not work because the University's core mandate was not to offer goods and services on credit. Photo: Nation.
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He advised that the only way the University could find help would be through making an application to the CBK through bureaus in order to list defaulters.
Mbeche said they had accumulated debts by allowing many students to study without clearing fees as a way of boosting enrollment.
"The students have graduated but they don't have certificates. We also sealed a loophole in which some staff members were aiding students to get their certificates without clearing arrears," he said.
Kenya National Bureau of Statistics findings indicated UoN's enrollment reduced to 67,827 students in 2018 down from 98,715 in 2015 .
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