Public universities are under severe financial pressure, with a shortfall of about Sh100 billion needed to run daily operations, support students, pay staff, and cover pending obligations. The funding gap persists despite government efforts to roll out a student-centred allocation system aimed at making financing more equitable.
During Thursday’s session with the National Assembly Committee on Education, officials warned that the shortfall has left several public institutions technically insolvent, with some struggling to meet salary and pension commitments on time.
Higher Education and Research Principal Secretary Beatrice Inyangala said the ministry continues to face a Sh100 billion deficit, even as the government implements the needs-based funding framework introduced by the President.
“We are implementing a multi-pronged strategy that includes asset-based securitisation and enhanced loan recoveries. Monthly recoveries have improved from Sh500 million to Sh650 million,” Inyangala said, highlighting that high unemployment continues to affect full loan repayment.
She explained that the funding model considers the financial capacity of students’ families, programme costs, and institutional efficiency to ensure fairness and sustainability.
“Each household is assessed individually. Students from vulnerable backgrounds pay as little as Sh5,800 a year, while those from higher-income families pay up to Sh150,000,” Inyangala added.
Even with higher allocations — with the Higher Education Loans Board receiving Sh98.4 billion and the University Fund reaching Sh4.8 billion — MPs said universities remain financially unstable.
Inyangala attributed the crisis to “a mismatch between projected and actual disbursements,” noting that roughly eleven public universities are technically insolvent. She singled out Moi University and the Technical University of Kenya as being in critical financial condition.
Moi University Acting Vice-Chancellor Prof. Isaac Kiplagat said the institution received Sh1.5 billion last year, which was used to pay staff salaries and clear arrears, but the university still faces a pension liability of about Sh4.5 billion.
“We have received approvals to liquidate some properties in partnership with the Pension Fund to clear arrears,” Kiplagat saidTechnical University of Kenya Vice-Chancellor Prof. Benedict Mutua told MPs that the institution has not been able to pay gross salaries since 2013.
“We only pay net salaries. Our monthly wage bill stands at Sh102 million, but we receive less than Sh60 million from the Treasury. The staff-to-student ratio is nearly 1:1, which is unsustainable,” Mutua said.
HELB CEO Geoffrey Monari urged the committee to ensure that loan disbursements are timely, noting that “money follows the student” and that prompt payments would stabilise university finances.
Committee Chairperson Julius Melly assured officials that MPs would push for measures to guarantee adequate and predictable funding for higher education.
“The Government must align university financing with the new model’s intent to safeguard the future of higher education,” he said.
