𝐌𝐏𝐒 𝐐𝐔𝐄𝐒𝐓𝐈𝐎𝐍 𝐑𝐈𝐒𝐈𝐍𝐆 𝐔𝐍𝐈𝐕𝐄𝐑𝐒𝐈𝐓𝐘 𝐃𝐄𝐁𝐓𝐒 𝐀𝐒 𝐏𝐒 𝐀𝐒𝐊𝐒 𝐅𝐎𝐑 𝐅𝐔𝐍𝐃𝐈𝐍𝐆

𝐌𝐏𝐒 𝐐𝐔𝐄𝐒𝐓𝐈𝐎𝐍 𝐑𝐈𝐒𝐈𝐍𝐆 𝐔𝐍𝐈𝐕𝐄𝐑𝐒𝐈𝐓𝐘 𝐃𝐄𝐁𝐓𝐒 𝐀𝐒 𝐏𝐒 𝐀𝐒𝐊𝐒 𝐅𝐎𝐑 𝐅𝐔𝐍𝐃𝐈𝐍𝐆

Members of the National Assembly Committee on Education have raised concerns over the ballooning debts in public universities, questioning why the pending bills continue to rise despite the release of government funds under the student centered funding model.

The Committee, chaired by Hon. Julius Melly, met top officials from the Ministry of Education led by Principal Secretary for Higher Education and Research, Dr. Beatrice Inyangala, alongside the Mr. Geoffrey Monari, CEO, Higher Education Loans Board, and Technical University of Kenya, Vice-Chancellor Prof. Benedict Mutua.

Dr. Inyangala told the Committee that the Ministry is grappling with a KSh100 billion funding gap for higher education institutions, even as the Government rolls out the needs-based funding model introduced by the President. “We are implementing a multi-pronged strategy that includes asset-based securitization and enhanced loan recoveries. Monthly recoveries have improved from KSh500 million to KSh650 million,” she said, noting that high unemployment continues to hinder full loan repayment.

The PS said the new model, which ties funding to students’ financial backgrounds, programme costs, and institutional efficiency, is meant to ensure equity and sustainability. “Each household is assessed individually. Students from vulnerable backgrounds pay as little as KSh5,800 a year, while those from higher-income families pay up to KSh150,000,” she explained.

Despite an increase in allocations to HELB and the University Fund rising to KSh 98.4 billion and KSh 4.8 billion respectively MPs expressed concern that universities remain in deep financial distress.

Dr. Inyangala attributed the crisis to “a mismatch between projected and actual disbursements,” revealing that about eleven public universities are technically insolvent. “Two institutions, Moi University and the Technical University of Kenya are in critical financial condition,” she said.

Moi University Acting Vice-Chancellor, Prof. Isaac Kiplagat, confirmed that the university received KSh1.5 billion last year, which was used to pay staff salaries and arrears. However, he said the institution still faces a pension liability of about KSh4.5 billion. “We have received approvals to liquidate some properties in partnership with the Pension Fund to clear arrears,” he said.

Prof. Mutua stated that TUK has been unable to pay gross salaries since 2013. “We only pay net salaries. Our monthly wage bill stands at KSh102 million, but we receive less than KSh60 million from the Treasury. The staff-to-student ratio is nearly 1:1, which is unsustainable,” he told MPs.

The HELB CEO urged the Committee to support prompt disbursement of loan funds, saying timely payments would help stabilize universities since “money follows the student.”

In his closing remarks, Chairperson Melly assured the officials that the Committee would make recommendations to ensure adequate and predictable funding. “The Government must align university financing with the new model’s intent to safeguard the future of higher education,” he said.