The Commission for University Education (CUE) has granted bankrupt Inoorero University owners a two-year period to enable its continuing students to finish their programmes. The extension was to consider the students who are doing degree course to complete their courses. The students had expressed their worries that they will not have completed their studies.
Professor David Some, CUE secretary, on Thursday said there would be no extension or intake of new students as the university failed to prove that it has supporting infrastructure to accommodate students after its host building was sold to Mount Kenya University. Prof Some told the Business Daily in an interview;
“The university has become insolvent and we have only offered the two years as teach out programmes and then subsequently lead to its closure,”
The university auctioned its eight-storey campus building in Parklands, Nairobi after it failed to service a multi-million shilling loan it had borrowed five years back to fund its expansion. Mount Kenya University bought for Ksh. 380 million.
MKU has already taken over the building while International University of Professional Studies- Inoorero’s new name after rebranding-students occupy a section of the fourth floor that accommodates degree students.
The collapse of the institution has raised eyebrows on the investments of the owner, Francis Nyamm. Turns out Francis was also chairman and principal shareholder of Kenya Finance Bank (previously known as Kenya Finance Corporation) which collapsed in early 1990’s. Several of his business investments have gone downhill.
Most of those who’ve followed up on this collapse blame it on the management for the reasons above. Some even think he strategy to change the name was a horrible idea as it didn’t pick up students as well as they’d hoped. Others think that ‘Inoorero’ was the worst name to give that university as it reduced the target market as it can only be understood by one ethnic group and probably lost the college a lot of potential students. It’s failure can be accorded to anything so it’s too late for that.
After the Nairobi Aviation scandal and now this, seems like private universities may be in trouble. These is very bad publicity for private universities despite being preferred because of ‘better’ service and teaching.