Govt to Withdraws Private Universities Funding
Private universities in Kenya may suffer financially if a proposed policy to cease the placement of government-sponsored students in their facilities is passed by Parliament.
The policy, as outlined in the 2023-2024 Budget Policy Statement presented by Budget and Appropriations Committee Chairperson Ndindi Nyoro, would end the exchequer funding of private universities in the coming financial year.
Private universities would lose significant financing, which they have relied on to operate their institutions.
Reports suggest that private universities have received KES 9 billion since the program began in 2016 as part of the government’s strategy to provide fully-funded university education to students who score a grade C+.
Private universities would also lose government-sponsored students, resulting in many students missing out on university education due to limited slots available in public universities.
The government currently pays for 20.79% of the unit cost for government-sponsored students in private universities, compared to 48.11% in public universities.
Private universities have been the biggest beneficiaries of the funding program, with Mount Kenya University and Kabarak University receiving KES 552.3 million and KES 357.9 million, respectively.
Other universities that receive significant funding include the Catholic University of East Africa, Kenya College of Accountancy, University of Eastern Africa Baraton, and Zetech University.
The proposal comes at a time when most public universities are struggling with debt and are unable to make statutory deduction payments, such as Pay As You Earn, Sacco remittances, bank loan repayments, and remittances to the National Hospital Insurance Fund and National Social Security Fund for health insurance and retirement benefits, respectively.
Public universities owe contractors KES 1.4 billion, part-time lecturers KES 4.5 billion, suppliers KES 4.8 billion, and Saccos KES 4.1 billion.
The proposal has raised concerns among Members of Parliament who have called for a review of the funding program.
It is uncertain whether the proposal will be approved, and its implementation would have far-reaching consequences for private universities and students seeking university education.
Govt to Withdraws Private Universities Funding
