Govt Ends Private University Placement & Funding
Private universities in Kenya are facing a grim future following the government’s decision to terminate exchequer funding for private institutions.
2023-24 Budget Policy Statement indicates that the State has initiated the process to end the placement of government-sponsored students in private universities from the next financial year.
The move, if approved by Parliament, will spell doom for private universities that have been relying on state capitation to stay afloat amid financial turmoil in institutions of higher learning.
The policy programme was introduced in 2016 as part of the government’s strategy to ensure that students who score the university minimum entry grade of C plus are absorbed and funded by the state.
Kenya Universities and Colleges Central Placement Service (KUCCPS) is the institution that is mandated by law to place form four graduates in universities and colleges.
However, the recent announcement that the State Department for Higher Education and research, through the KUCCPS, should not place new government-sponsored students in private universities will have significant ramifications for the private sector.
There are fears that the end of the placement of government-sponsored students in private universities could see thousands miss direct entry to universities because of limited slots that are determined by bed capacity.
Details show that private universities have received about Sh9 billion since 2016 when the programme started.
In the 2017/2018 financial year, a total of Sh1.56 billion was disbursed towards the program while in the 2020/2021 financial year, a total of Sh2.7 billion was disbursed.
However, MPs have previously questioned why the State is funding private universities yet the institutions are not open to audit by the nation’s Auditor-General.
The government is struggling to fund public universities that are choked with debts amounting to over Sh56 billion. As a result, there have been calls to review the funding policy for private universities.
Public Investments Committee on Education and Governance has proposed a review of the policy, citing the non-existent capacity gap between slots available in public universities vis-a-vis qualified students.
The committee chair further noted that the objectives of private varsities differ from that of other national institutions. Most private universities are profit-making entities, and their objectives may be at variance with national development goals.
The Bumula MP, Wanami Wamboka, explained that public universities should have first priority to fill up their slots to 100 per cent before financing students through capitation in private entities.
Recent data from the Universities Fund shows the State currently pays for 20.79 percent of the unit costs for government-sponsored students in private universities and 48.11 percent of those in public universities.
The United States International University stopped admitting government-sponsored students due to underfunding. Strathmore University is the other high-profile private university that also stopped admitting State-sponsored students.
Mount Kenya University, Catholic University of Eastern Africa (CUEA), and Daystar University are among the private universities that admit government-sponsored students.
In conclusion, the termination of exchequer funding for private universities will have a significant impact on the private sector. Private universities have been relying on state capitation to stay afloat amid financial turmoil in institutions of higher learning.
The government is struggling to fund public universities that are choked with debts amounting to over Sh56 billion.
The decision to end the placement of government-sponsored students in private universities could see thousands miss direct entry to universities because of limited slots that are determined by bed capacity.
There have been calls to review the funding policy for private universities as the objectives of private varsities differ from those of other national institutions.
Govt Ends Private University Placement & Funding
