Mounting unpaid fees across public universities are raising fresh concerns about the financial health of higher education institutions, with the Auditor General warning that failure to recover student debts could place some universities under serious strain.
The latest audit shows that outstanding fees from current and former students at seven public universities have reached Sh3.17 billion.
The report shows that the University of Eldoret carries the largest share of unpaid fees at Sh890.9 million. Maasai Mara University follows with Sh596 million, while Dedan Kimathi University has Sh584.2 million in outstanding balances. The auditor notes that a significant portion of the debts has remained unpaid for long periods, increasing the risk of losses.
At the University of Eldoret, Sh222.6 million of the unpaid fees has been outstanding for more than one year. Auditor General Nancy Gathungu said the institution did not provide details on how it intends to recover the long-standing debts.
“Further review of the records revealed that out of the student debtors’ balance of Sh890,879,661, an amount of Sh222,645,414 had been outstanding for a period of more than one year. Management did not explain the measures being taken to recover the long outstanding receivables from the affected student debtors,” she said.
The auditor also pointed out that the university’s student debt increased sharply within one year, rising by 172 per cent, which translates to more than half a billion shillings. Despite this growth, the institution had only set aside Sh17.8 million to cover possible bad debts.
By June 2025, Maasai Mara University had accumulated unpaid fees amounting to Sh596 million, even though its fees policy requires students to pay at the beginning of each semester. The audit found that the policy was not strictly enforced.
“However, review of the supporting documents provided for audit review indicates that the students, despite having fee balances, were allowed to graduate, attend classes, and sit for end-of-trimester exams,” Gathungu said.
The audit further found that the university had Sh12.26 million in Helb funds and bursaries from government entities that had not been allocated to student accounts.
“These balances were received from various National Government Constituency Development Funds (NG-CDFs), counties, and the national government, but were not posted into the students’ accounts and therefore remain unallocated in the records and not being put into proper use as initially intended,” she added.
Dedan Kimathi University reported unpaid fees of Sh584.2 million, with 21.4 per cent of the amount dating back to 2010. The auditor warned that failure to enforce the university’s debt management policy could lead to financial losses and affect day-to-day operations.
Chuka University recorded unpaid fees totalling Sh482.9 million, with Sh380.3 million of the amount accumulated within a single year. At Turkana University College, student debtors owed Sh161.85 million, representing 88 per cent of the institution’s total receivables.
“The student debtors increased by Sh84,089,886, or 108 per cent from Sh77,764,434 reported in the previous financial year,” Gathungu said. She warned that continued growth in unpaid fees could expose the institution to financial difficulties.
Tharaka University had unpaid fees amounting to Sh136.76 million but still allowed students to sit examinations despite delayed payments. Machakos University recorded a 134 per cent increase in student debt, with outstanding fees rising to Sh558 million, largely due to delays under the student-centred funding model.
“As at 30 June, 2025, Sh135,234,394 was due from the Universities Fund for scholarship and Sh178,689,223 from Helb for loans relating to the students-centred funding model,” the auditor said.
Machakos University also cited a conservatory order issued in August 2024 that stopped public universities from limiting access for students who had not cleared fees under the new funding model. Auditors also noted that Garissa University allowed students with unpaid balances to register for subsequent semesters, contrary to its fees policy.
The audit further revealed that some universities are holding refunds owed to former students amounting to Sh145 million. Dedan Kimathi University holds Sh47.5 million belonging to students who completed their studies between 2007 and 2020, while Maasai Mara University owes former students Sh97.8 million, including Sh53.9 million dating back to between 2009 and 2020.
“This was contrary to the University’s fees payment policy, 2018, which stipulated the process of refunding school fees and states that refunds due to overpayment will be paid in full (100 per cent) to the sponsor after completion of studies and clearance from the University,” Gathungu said.
