Public Universities Grapple with Soaring Sh77 Billion Debt Crisis, Reveals Machogu
The Education CS, Ezekiel Machogu, has announced that the outstanding debt of public universities has surpassed Sh77 billion. Machogu made this declaration during his participation in the 47th Graduation Ceremony at Egerton University.
He attributed the accumulation of this debt to the challenging economic conditions and mismanagement within the universities. He expressed regret that despite a decade passing, no satisfactory solutions have been identified.
Machogu affirmed that the government is actively developing innovative strategies to address the financial, management, and board-related issues affecting the universities. However, he cautioned that the problem might persist if universities do not contribute to innovative resolutions.
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One such solution involves sponsoring Vice Chancellors to visit universities abroad for benchmarking purposes. Machogu emphasized that universities must utilize their own resources and initiatives to generate funds and alleviate the debt burden.
He also disclosed that the government’s approach will prioritize evidence-based measures in order to offer appropriate solutions. Concurrently, the government is grappling with the allocation of capitation funds for current first-year students.
Machogu noted that although over 119,000 out of 140,000 placed students have reported to universities, the government has not yet disbursed funds for them, leading universities to admit these students without the promised capitation funds.
Furthermore, he revealed that the government intends to initiate a thorough reorganization to ensure universities are administered prudently with maximum resource utilization. Addressing the graduates, Machogu encouraged them to leverage their education and training to contribute positively to society, highlighting the abundance of opportunities, especially in the realm of digital jobs.
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Moiben MP Phyllis Bartoo commended the government’s efforts in reforming universities to alleviate their financial burdens and facilitate transformation. She explained that legislators are advocating for these reforms to reduce the burden on universities.
Additionally, she suggested that the government explore alternative methods to alleviate university debts and provide support in times of need.
Egerton University’s Chancellor, Dr. Narendra Raval, advised the graduates to remain focused on their objectives and prioritize their mental well-being. He encouraged them to explore entrepreneurship and self-employment opportunities.
Meanwhile, Prof. Isaac Kibwage, the Vice Chancellor, reported that the university oversaw the graduation of 33 PhDs, 118 Master’s degrees, 3,629 Bachelor’s degrees, and 168 diploma recipients. He also mentioned that the government has pledged Sh100 million for the construction of a laboratory and offices at the university.
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Public Universities Grapple with Soaring Sh77 Billion Debt Crisis, Reveals Machogu