Job Cuts Loom in Private Universities Amid Funding Formula Implementation
As a result of the new funding formula, it has become apparent that private universities may lose one-sixth of their staff.
This includes administrative staff, non-teaching staff, and a section of teaching staff.
Professor Stephen Mbugua, the president of the Kenya Association of Private Universities, estimates that each institution may be required to lay off at least 20 employees in the first year of the funding model’s implementation.
He predicts that ten institutions with fewer than ten students will be the hardest hit.
In other words, if they each lose 20 employees, approximately 200 employees could be laid off in the first year. The majority of these universities have at least seven faculties, but over ten have fewer than twenty students.
This will result in three or four faculties having no students.
Kenya Association of Private Universities chairman Professor Stephen Mbugua stated that in the short term, the staff that will be managing those in the first year will have no work, which could result in job losses.
Prof. Mbugua states that some universities may be compelled to increase tuition, while other cost-cutting measures may include diminishing employee benefits such as medical coverage and allowances.
“I would fear that happening, but some of these universities, particularly faith-based institutions, have no other source of revenue and will be forced to implement cost-cutting measures, which will have a ripple effect on the household and the economy,” he said.
This comes as the Chairman of the Commission for University Education (CUE), Chacha Nyaigoti, advocates that government funding should not be allocated to degree programs that have failed to attract a sufficient number of students.
He also emphasized that lecturers responsible for teaching these courses should explore opportunities outside the academic sector.
He pointed out that certain courses have such a limited focus that when students seek global employment opportunities, a significant portion of their time is dedicated to elaborating on the extent of their degree programs.
In light of this, he expressed his view that universities should reconsider offering such narrow courses.
Job Cuts Loom in Private Universities Amid Funding Formula Implementation