Auditor General Edward Ouko
The country’s premier training college for hospitality is on its knees, the latest audit report has revealed. As per the report by Auditor General Edward Ouko, Kenya Utalii College faces closure. The report warned that operations at the learning institution will grind to a halt unless the Government intervenes by pumping in funds.
According to the 2015/16 Financial Year report tabled in the National Assembly, the institution recorded an accumulated fund deficit of Sh658.73 million in the past two years, while its current liabilities stand at Sh3.05 billion.
“The current liabilities balance of Sh3.5 billion exceeded the current assets figure of Sh442.28 million, thus resulting in a negative working capital balance of Sh2.60 billion as at June 30, 2016,” reads the report in part.
“The college is therefore technically insolvent and its continued existence as a going concern is dependent on financial support from the Government and its creditors,” adds the report.
Since its inception in 1975, the college has a reputation of churning out over 50,000 highly qualified graduates in the hotel, aviation and tourism industry in the region and the rest of the world.
Last year, the institution whose fortunes are dwindling was ranked the fourth best tourism institution in the world, according to the Young Chef Olympiad, an event that was held in Kolkata, India, in January.