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Private Universities Unable to Pay Salaries During Lockdown

Universities were closed together with other congregational places, like schools and churches as one of the initial measures to control the spread of coronavirus disease-COVID-19. Although the closure was initially meant to last 32 days, it has since been extended to May 5.
Nkumba-University

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A number of Private universities have alerted their employees that they will not be able to pay their salaries after more than a month of inactivity, following the closure of education institutions.

Universities were closed together with other congregational places, like schools and churches as one of the initial measures to control the spread of coronavirus disease-COVID-19.  Although the closure was initially meant to last 32 days, it has since been extended to May 5.   

Ndejje University was the first to alert its staff that they might not be able to get April salaries. The same has since been echoed by several other universities with each passing an internal memo to its staff advising them to fasten their belts and plan for the worst.

Nkumba University through its secretary Associate Prof. Francis Kasekende has also sent a letter to its staff explaining that since the University might not be able to avail their payments starting with the running month of April. 

The University Vice-Chancellor Professor Wilson Muyinda Mande shares that hinging on cash inflows from students’ tuition and given the fact that they are all away locked at home; the University cannot raise any funds to pay staff salaries and other essential items. 

Prof Mande, however, advises the staff to utilize the little they have sparingly, adding that the salaries will be paid as and when the funds are available.   

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Bishop Stuart University situated in Mbarara is also facing the same dilemma. Professor Maud Kamatenesi Mugisha, the Vice-Chancellor, notes that the university council has assured them of the April salaries but remains uncertain on whether they will avail them payments for May. 

“The university council has already assured us of April. But I cannot tell what will come afterwards. We are all under a crisis. However, although we can see how things go at the managerial level the final decision is with the governing body since it the one that employs us.” Says Prof. Kamatenesi.  

Prof. Muhammad Mpezamihigo, from Kampala International University says that although cash inflows may delay, they plan to give their teaching and non-teaching at least something that can keep them going during the crisis. 

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Prof. Mpezamihigo observes that the crisis is an eye-opener to the private universities and their owners and foundation bodies to consider investing and reduce their reliance on tuition from students but also have some other source which can help them navigate through storms like COVID-19.  

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According to expert analysis, the lockdown to control the spread of coronavirus disease has meant an immediate stop in the cash flows of most businesses. This means many will struggle to pay salaries, pension and other obligations like water and electricity. It is expected that more companies will either layoff staff or cut staff pay to go through the COVID-19 crisis.

Several countries have resorted to giving institutions and companies subsidies to help them go through the crisis.