The government faces more financial challenges in the higher education sub-sector following a demand by private universities for the payment of Sh50 billion owed over nine years.
According to the Kenya Association of Private Universities (Kapu), the bill has accumulated since 2016 when the government introduced a programme to place and sponsor some students in private universities.
Its sponsorship of the students has, however, continued to decline, leaving the private universities with a huge bill. The institutions now regret that this has affected their operations.
Although the programme was stopped in 2023, there are still some continuing government-sponsored students in private universities.
The demand comes at a time the government is grappling with a Sh80 billion debt cumulatively owed by public universities to various creditors and government agencies like the Kenya Revenue Authority.
The 34 vice chancellors of private universities who have been meeting in Mombasa to discuss the welfare of the universities urged the State to pay up the debt accrued over the last nine years to ease their operations and financial burden that has forced them to seek for loans from banks. KAPU is an umbrella body of private universities in Kenya.
“KAPU appreciates the collaborations with the State in developing human capital. In the course of these collaborations, the government has not met its financial obligations and owes the private universities about Sh50 billion on unpaid disbursement for students most of whom have graduated,” said Kapu Chairman Stephen Ngari.
The Catholic University of Eastern Africa (CUEA) VC said financial challenges have affected operations in private universities.
“We respectfully urge the government to expedite the settlement of the Sh50 billion pending bills which span from 2015 – 2016 academic year to present because there are still continuing students who the State isn’t disbursing the promised allocations. Kapu notes the approval of bridging programmes for students who have not made the C+ threshold of joining the universities,” said the VC.
The bridging programmes will give a second chance to the students to advance their education to tertiary institutions.
Rev Prof Ngari said private universities play a crucial role as employment creators and providers of skilled manpower necessary for economic development of Kenya.
“Our institutions not only contribute to the educational advancement of thousands but also actively participate in initiatives that foster innovation and entrepreneurship,” said Prof Stephen Ngari chairman, Kapu.
He said private institutions of higher learning contribute to job creation in various sectors of the economy, helping to reduce youth unemployment-a pressing issue that affects our national progress.
Prof Ngari said private universities offer quality and affordable training with a focus on timely completion.
Kapu treasurer Prof Washington Okeyo said the mandate of a university is to teach, do research and engage in community development.
"All these require resources, for instance in teaching a university has to develop infrastructure facilities and maintain by providing facilities like electricity, water, sanitation among others which are used daily when students are in campus. Universities also hire lecturers and professors to teach students and we also have administrative stuff which require money," said the VC.
Prof Okeyo, who is also the VC of the Management University of Africa, said the institutions are operating under difficulties due to the incurred fixed costs.
"If the State has not remitted that amount of money then it becomes very difficult for universities to operate due to the fixed costs which are incurred regardless whether there is any activity like teaching or supervision," said Prof Okeyo.
The don said the private universities have been forced to borrow funds for operations from financial institutions to support teaching.
"What we haven't done as private universities is sending students home despite the government owing us Sh50 billion. Its means we are very philanthropic also therefore we are offering scholarships directly and indirectly to the students. Suffice to say that a number of those students graduated two years ago yet we haven't been paid. The state should pay us so that we pay the loans we have taken," added Prof Okeyo.
