UoN, KU, and TUK Lead in University Debt Rankings
Public universities in Kenya are on the verge of financial collapse due to an overwhelming debt burden that has reached KSh 72.2 billion. Institutions such as the University of Nairobi, Kenyatta University, and the Technical University of Kenya are among the worst affected.
The insolvency crisis threatens to cripple learning, with lecturers and retirees from many of these institutions still pursuing their unpaid dues without success.
The Parliamentary Education Committee has raised concern, warning that the situation has become critical. Treasury allocations were described as insufficient, likened to a drop in the ocean compared to the massive financial crisis at hand.
Lawmakers emphasized the urgency of addressing the matter to prevent further deterioration of university operations.
Breakdown of Debt in Leading Institutions
Among the universities with the highest outstanding debts are:
- University of Nairobi: KSh 13.2 billion
- Technical University of Kenya: KSh 11.1 billion
- Kenyatta University: KSh 10.6 billion
- Egerton University: KSh 10.1 billion
MPs demanded that each university provide a clear repayment roadmap, especially in light of garnishee orders issued against some institutions, which have further complicated financial management.
The Higher Education Loans Board (HELB) is also grappling with a significant shortfall. It received KSh 41.1 billion for student loans, far below the required KSh 76.3 billion, resulting in a KSh 35.1 billion deficit. The shortfall has hindered loan disbursement, with fears that students may be promised funding that never materializes.
Misallocation of Funds Under Scrutiny
The committee expressed concern over the diversion of funds to new capital projects while stalled developments remain neglected. Legislators questioned the logic behind spreading resources thinly across numerous initiatives, none of which reach completion, thereby wasting public funds.
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Further scrutiny revealed inconsistencies in budget allocations. For instance, the University of Eldoret and the Open University received more funds than they had requested in the Budget Policy Statement (BPS).
MPs challenged the Chief Financial Officer (CFO) responsible, suggesting they had failed to adequately review the financial documents presented, casting doubt on the accountability of the entire budget process.
UoN, KU, and TUK Lead in University Debt Rankings
