Blow to universities as Government cuts funding

The sorry state of our universities.

The Technical University of Kenya (TUK) has raised concerns about reduced government capitation for July 2024.

In a statement, Deputy Registrar Stephen Karanja said the cut had caused a shortfall in the institution’s ability to pay full monthly salaries.

Staff below Grade Five will receive their full salaries, while those above this grade will only get 65 per cent of their wages.

Karanja added that the remaining balance will be disbursed once additional funds are available.

This issue is part of a wider funding crisis affecting universities. A report released in May detailed TUK’s financial difficulties, showing a debt of more than Sh10 billion.

The report, presented to Parliament, noted that TUK is among 23 out of 40 universities facing severe financial instability due to significant debts, with the total debt burden across all institutions reaching a record Sh76 billion.

Other affected institutions include the University of Nairobi with a debt of Sh18 billion, Kenyatta University with Sh9.538 billion and Jomo Kenyatta University of Agriculture and Technology (JKUAT) with Sh8.857 billion.

The financial challenges have led to defaults in pension payments, gratuities, insurance premiums, unpaid bills to suppliers, unremitted employee deductions and outstanding payments to part-time lecturers.

Experts warn that if the crisis is not addressed, universities may face the risk of closure.