Makerere University is financially constrained and cannot generate revenue internally to run its operations.
This has been revealed by the deputy vice chancellor finance and administration Professor Barnabas Nawangwe, who says since the introduction of the staff incentives allowances in 2013, the university has not been able to cater for all the services at the university.
He made this revelation while reading a report on the closure and the financial situation of the university.
According to the report, the university spends Shs. 3.7 billion monthly to cater for the incentives of lecturers.
Meanwhile, he says that despite accounting for 80 per cent of the student population, privately sponsored students are paying tuition below the unit cost, and these monies cannot clear all the debts of the university.
He says they are hopeful that the visiting committee appointed by the president yesterday will come up with a lasting solution to the many problems the university is grappling with.