Govt Rejects Sh41bn Varsity Funding Request as Tuition Fees is Set to Triple Under Proposal
The Kenyan government has declined funding requests totaling KES 41.6 billion from public universities and the Higher Education Loans Board (HELB).
These organizations had requested KES 144.6 billion in funding for the upcoming financial year, but were only allocated KES 103 billion.
The resulting shortfall of KES 41.6 billion is wider than the current deficit for the 2022/23 financial year, which was KES 27.9 billion, indicating that the government has not been able to keep up with the growing funding needs of public universities.
This funding gap will force public universities to make budget cuts, including scrapping some courses and laying off staff. The deficit will also exacerbate the current financial crisis faced by many public universities, with the Auditor General declaring some technically insolvent.
The Technical University of Kenya, Egerton University, Kaimosi University, and Karatina University are among those that faced deficits.
The government’s decision not to meet the funding requests is part of a trend where state financing of public universities has remained stagnant, even as enrollment of parallel students has dropped.
This has increased the government’s liability and reduced revenue streams for public universities, leaving many in financial straits.
The government’s priority is to reboot the economy after the aftershock of the Covid-19 pandemic, drought, and the Russia-Ukraine war. The funding gap is expected to be plugged by students paying for their own fees, with the government proposing to hike tuition fees from KES 16,000 to KES 52,000 per student.
This move has been criticized for potentially denying students from lower-income families the opportunity to attend university. HELB, which supplements the 80% of State-sponsored students, also had close to KES 9.8 billion of its request rejected, with only KES 17.8 billion approved.
The State financing of public universities has been on the radar of the IMF under a 38-month program aimed at reducing debt vulnerabilities by reducing non-essential spending and increasing tax revenues.
In conclusion, the Kenyan government’s decision not to meet funding requests from public universities and HELB will have far-reaching implications for these institutions. The funding gap will force universities to make budget cuts, including laying off staff and scrapping some courses.
This may also deny students from lower-income families the opportunity to attend university if tuition fees are increased as proposed. It remains to be seen how the Kenyan government will address this issue and whether other sources of funding will be sought to mitigate the shortfall.
Govt Rejects Sh41bn Varsity Funding Request as Tuition Fees is Set to Triple Under Proposal