Kampala — KYAMBOGO University is running out of funds to run business.

A source in the university's management, noted that for the whole of this semester, the university has been depending on sh1.8bbn which is way below waht is required to operate efficiently.

The Uganda Revenue Authority confiscated sh2.4b from the Kyambogo University accounts in Pay As You Earn (PAYE) arrears last May.

The revenue authority (URA) ordered Stanbic Bank to transfer the money to its account ahead of the reopening of the university for the new semester that open about a month ago.

The acting vice-chancellor, Dr. Mpandey Basiima, when contacted, confirmed that the university did not have enough fnds to go through the semester.

He however, added that as of now, "activities at the university were not interrupted, though this will not last for the whole semester."

"It is not alarming. However, majority of our students are on school practice, and it will require us to send supervisors to the ground soon. That requires more money to finance this activity. More other activities need to be financed."

From 2005, the university was not submitting PAYE to URA. The unpaid arrears were deducted from the university account in May.