A report by the Auditor General Edward Ouko, has revealed the University of Nairobi (UoN) is under a financial crisis due to low State funding and under-collection of internal revenue.
The report seen by the Business Daily said the situation had forced the institution to depend on commercial bank overdrafts, to survive.
''As a result the university has fallen behind in paying statutory dues to the Kenya Revenue Authority, Pensions Scheme, National Hospital Insurance Fund, National Social Security Fund, Higher Education Loans Board and University of Nairobi Co-operative,'' reads the report in part.
UoN did not remit Sh673.6 million statutory deductions from staff salaries to the respective institutions.
Titled: 'UoN Financial, Procurement and Human Resources Management', the report was sanctioned by the National Assembly following a public petition to Parliament.
The petition alleged the higher learning institution was experiencing financial crisis of unprecedented proportions and was operating on a deficit of Sh2.6 billion.