Kenya’s Education Ministry Seeks Waiver for Public University Debts

NAIVASHA – The Ministry of Education is engaging with the Ministry of Finance and other stakeholders to potentially waive a portion of the substantial pending bills that public universities in Kenya currently face, which amount to more than Sh75 billion, announced Principal Secretary for Higher Education and Research Beatrice Muganda Inyangala. This initiative aims to alleviate financial pressures on these institutions, particularly regarding statutory deductions not remitted due to funding shortfalls.

According to Kenya News Agency, discussions are ongoing with the Treasury and the Pending Bills Committee to explore the possibility of the Kenya Revenue Authority (KRA) waiving dues owed from unremitted statutory deductions, such as Pay As You Earn and National Hospital Insurance Fund (NHIF), allowing universities to settle other outstanding debts. This move is considered crucial for the financial stabilization of public universities, which have accrued a total of Sh82 billion in pending bills over the last five to six years, primarily due to inadequate government funding.

The government previously employed a Differentiated Unit Cost (DUC) funding model, under which it covered 80 percent of the course costs for students, regardless of their socioeconomic status. However, only 68 percent of the required funding was disbursed over a six-year period, leading to the accumulation of debts. In contrast, Dr. Inyangala highlighted that the new funding model has increased universities’ budgets by Sh38 billion to accommodate growing student numbers and the introduction of new programs aligned with job market demands.

With student enrollment reaching approximately 563,000 in the 2022/23 academic year, public universities depend heavily on government subsidies. Despite an allocation of Sh44,023,955,000 from the Treasury for the 2023/24 financial year, universities faced a deficit of Sh27,921,094,600, deepening their financial crisis. President Ruto has promised an increased budgetary allocation of Sh84 billion for the upcoming fiscal year, though this commitment is challenged by a shortage of funds at the Treasury.

During a meeting with vice-chancellors and deputy vice-chancellors in Naivasha, organized by the Commission for University Education (CUE), discussions focused on preparations for the implementation of the Competency-Based Curriculum (CBC) by 2029. Dr. Inyangala underscored the efforts of local universities to align their curricula with the demands of the new education system, particularly in areas such as sports science, creative arts, and STEM.

CUE CEO Professor Mike Kuria emphasized the need for more professors and doctoral graduates to meet the growing demand for quality education and announced measures to enhance human capacity, including sponsoring teaching staff for doctoral studies abroad. He also pointed out the continuous efforts of universities to mobilize resources and secure alternative funding through research proposals and grants.

The initiative reflects a concerted effort by Kenya’s educational authorities to address the financial and operational challenges facing public universities, ensuring they are equipped to offer quality education and adapt to the demands of the CBC system.