At least 34 private universities in Kenya have not received student disbursements dating back to 2015-2016 financial year and are owed a total of Ksh 50 billion.
Speaking in Mombasa during a four-day KAPU national officials’ meeting, KAPU Chairperson Reverend Prof. Stephen Mbugua who is also the Vice Chancellor of the Catholic University of Eastern Africa (CUEA) said the funds are unpaid student disbursements.
“At least 34 universities have not received these funds, translating to an average of Ksh 1.5 billion per institution. This has significantly affected operations in private universities,” said Prof. Mbugua.
Effects of the Unpaid Funds on Private Universities
Financial Struggles
- Universities have been forced to seek alternative funding from loans, internal income-generating activities and student self-funding.
- Some institutions owe more than Ksh 2 billion each making it difficult to maintain financial stability.
Stalled Infrastructure Development
- Lack of funds has halted expansion projects including classrooms, laboratories and student facilities.
- The Ksh 50 billion debt if settled could sustain university infrastructure development for at least two to three years.
Strained University Operations
- Despite government placement of students in private institutions, these universities have continued to offer education services without receiving corresponding government disbursements.
- Government placed students in private institutions but funding has never been remitted. The money was meant to facilitate the students yet it remains unpaid.
Increased Institutional Debt
- Many universities have accumulated bank loans to cover operational costs leading to increased financial pressure.
KAPU’s Appeal to the Government
KAPU Treasurer Prof. Washington Okeyo also the Vice Chancellor of the Management University of Africa urged the government to expedite the clearance of the pending bill to ensure smooth operations in private universities.
“Private universities did not turn away students placed in these institutions by the government but funding has never been remitted. The money was meant to facilitate the students yet it remains unpaid,” said Prof. Okeyo.
What Next?
- Urgent: Government must pay private universities\
- Clear the Ksh 50 billion debt and universities will improve learning environments, sustain operations and grow.
- A structured approach to government funding of private institutions will prevent future financial crises.
Private universities are still struggling with financial uncertainty. This must be fixed for #HigherEducation in Kenya.