Universities facing challenges with excessive staffing and unregulated growth

Universities facing challenges with excessive staffing and unregulated growth

The Public Investments Committee on Governance and Education, chaired by Bumula MP, Hon. Jack Wamboka, has identified the unregulated growth of universities, along with excessive staffing, as the principal issue preventing institutions of higher education from managing their payroll, operational, and maintenance costs.

Referring to the Technical University of Kenya (TU-K), the Committee noted that since its designation as a full-fledged university on January 15, 2013, the institution has been grappling with persistent funding deficits. Its estimated monthly revenue of Kshs. 207 million, which includes Kshs. 63. 3 million in capitation, is insufficient to meet its monthly expenses of Kshs. 314 million.

The lawmakers pointed out a monthly wage bill of Kshs. 272 million that remains unpaid, contributing to an accumulated debt of Kshs. 12. 99 billion, which includes arrears from the 2017–2021 Collective Bargaining Agreement (CBA) cycle.

In light of these cash flow difficulties, the University has resorted to disbursing net salaries to all staff, neglecting to remit statutory deductions (pensions, PAYE, and housing levy) and third-party deductions (union dues, bank loans, SACCOs, welfare contributions, and insurance premiums) from employees’ salaries. These financial challenges have subsequently resulted in the accumulation of outstanding bills.

Shifting their focus to Moi University, the Committee acknowledged that this institution is similarly struggling to fulfill its daily operational expenses, in addition to the non-remittance of payroll deductions. The pending bills as of March 31, 2025, amounted to Kshs. 9,234,952,068.

As a result, Moi University has also opted to pay net salaries to all staff, failing to remit statutory deductions (pensions, PAYE, and housing levy) and third-party deductions (union dues, bank loans, SACCOs, welfare contributions, and insurance premiums) from the salaries of employees.

Currently, the outstanding balance owed to the Pension Scheme and Provident Fund is approximately Kshs. 4. 2 billion, which includes interest and penalties. The Committee noted that this predicament has contributed to the rising incidence of strikes at the university.

Members also expressed concerns about the reinstatement of Vice-Chancellors who had previously been placed on leave, particularly referencing Kenyatta University.

The Committee observed that Prof. Paul Wainaina commenced his leave on April 15, 2024, with the intention of utilizing accrued leave days, in accordance with a Circular from the Chief of Staff and Head of the Public Service. Documentation indicated that Prof. Wainaina had accrued 202 leave days, which were set to expire on January 30, 2025.

However, upon the conclusion of the initial leave period, the Council decided to place Prof. Wainaina on extended leave.

The Committee was further informed that Prof. Wainaina contends that his approved leave concluded on January 30, 2025, asserting that he should therefore be permitted to resume his office.

Additionally, the lawmakers were informed that the Professor claims he is not subject to the retirement age due to being on a fixed-term contract, which is set to expire on January 26, 2026.
Seeking clarity on the issue, the lawmakers observed that numerous staff members have been serving in acting roles for extended durations, which is in violation of legal and regulatory frameworks. They specifically highlighted the acting Vice-Chancellor of Kenyatta University, who has held the acting position for a year.

In response, the Cabinet Secretary for Education, Mr. Julius Migos Ogamba, articulated that to address these challenges, the Ministry of Education, in collaboration with TU-K, had formulated a recovery plan that encompasses several measures, including Direct Payroll Support, which will supply a net payroll support of Kshs. 145 million.

According to the CS, this support is to be extended for the duration from January 2025 through June 30, 2025, to ensure timely payment of staff salaries.

The Ministry of Education also committed to allocate conditional grants to mitigate the budget deficit, with phased distributions over the forthcoming Financial Years ranging from 2025/2026 to 2031/2032 to cover gross salaries and facilitate the punctual remittance of statutory deductions.

Under this arrangement, TU-K is anticipated to provide funds throughout the financial years 2025/2026, 2028/2029, and 2029/2030 to resolve the outstanding liabilities of the dissolved TU-K Staff Retirement Benefits Scheme, consistent with the overall recovery strategy.

With regard to Moi University, CS Migos informed the Committee that the Government had earmarked Kshs. 500 million to meet the financial obligations for staff by the conclusion of January 2025, and this sum had been disbursed to the University.

Moreover, to ensure an equitable resolution while maintaining financial sustainability for staff, the repayment plan for the overdue debts incurred by Moi University, totaling Kshs. 8. 6 billion, is intended to be executed in a phased approach.

“We are collaborating with all stakeholders within the university sub-sector to guarantee that our universities operate efficiently and sustainably, ensuring they do not encounter financial crises as has been previously observed,” the CS informed the lawmakers.

“A critical aspect of this effort is the establishment of sound corporate governance, which we are striving to implement by appointing capable and suitable individuals as Council members and as senior management in our public universities,” Mr. Migos further elaborated.

Addressing the matter concerning Prof. Wainaina, the CS mentioned that the issue is presently in court and that the ministry is awaiting the conclusion of the legal proceedings.

“As a Ministry, we have adopted the stance that we will be guided by the Court’s decision once the matter is resolved,” CS Migos stated.

Members expressed appreciation to CS Migos for the insightful response and the prompt actions taken to tackle some of the obstacles confronting higher learning institutions, yet urged him to adopt a decisive position, specifically regarding what they characterized as “rogue University councils” that are politically motivated and thereby appoint unqualified vice-chancellors and principals who ultimately mismanage the institutions.