Education Cabinet Secretary Julius Migos Ogamba when he appeared before the Senate Education committee at Bunge Tower Nairobi on December 5, 2024.
| Dennis Onsongo | Nation Media GroupEducation
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What is the state of Kenyan universities? Ruto, CS Ogamba contradict each other on debts, financial recovery
President William Ruto and his Cabinet Secretary for Education, Julius Ogamba issued, on the same day, conflicting statements on the status of public universities.
While President Ruto painted a picture of public universities that are on ascendancy to recovery and greatness, Mr Ogamba told Parliament that 23 out of 35 public universities are technically insolvent and warned that if nothing is done, they face a bleak future.
The President said that the government has increased funding to the education sector to Sh650 billion in the 2024 – 2025 financial year.
President William Ruto and Riara University Chancellor Dr Wilfred Kiboro during the awarding ceremony of a charter to the institution at State House, Nairobi on March 19, 2025.
He noted that the Higher Education Loans Board (Helb) has disbursed Sh36.6 billion to support 418,729 university students and 233,540 trainees in technical and vocational education and training (Tvet) institutions.
Dr Ruto said that the funding model which was quashed by the High Court in December last year helped rescue struggling public universities.
He spoke at State House, Nairobi when he awarded a charter to Riara University.
“I am pleased to report that both Moi University and the Technical University of Kenya are now on the path to financial recovery,” he declared.
However, on the same day, when Mr Ogamba appeared before the Education Committee of the National Assembly, he told Parliamentarians that 23 out of 35 public universities are technically insolvent due to severe underfunding.
This means that the institutions liabilities exceed their assets.
The University of Nairobi (UON) and the Technical University of Kenya (TUK), both of which have been in the news recently top the list of financially distressed institutions.
The Technical University of Kenya campus along along Haile Selassie Avenue in Nairobi.
All public universities collectively owe statutory bodies and other creditors a staggering Sh75 billion. UoN leads with a Sh13.6 billion debt, while TUK is burdened with Sh12.9 billion in unpaid obligations.
Urgent intervention
Mr Ogamba told the MPs that the universities are on the verge of collapse, warning that without urgent intervention, they risk shutting down entirely. He called for immediate reforms to save the institutions from financial ruin and academic decline.
“The 23 public universities are technically insolvent due to underfunding. No resources are coming to allow deductions of pensions. Universities are struggling to meet financial obligations, including debts, operational costs, and staff salaries and frequent disruptions in learning are affecting students’ academic progress,” he said.
The entrance to the University of Nairobi.
The CS urged the leadership of the UoN to implement financial reforms to prevent further decline and instability.
The debts include Sh4.075 billion owed to the Kenya Revenue Authority (KRA), a combination of historical arrears and current obligations. Pension contributions account for Sh7.27 billion in unpaid staff retirement funds, while the National Social Security Fund (NSSF) is owed Sh25 million.
The university also has outstanding payments of Sh21 million in housing levy, Sh194.28 million to general suppliers—Sh178 millions of which was accumulated this year—Sh719 million to direct service providers, Sh22 million in staff medical refunds, and Sh21.37 million in unpaid hospitalisation bills.
Additionally, Koitalel Samoei University College is owed Sh11.986 million, Commission for University Education Sh134.62 million, Kenya Universities and Colleges Central Placement Service Sh36.4 million and an Absa Bank loan amounting to Sh351.8 million.
The committee raised concerns about mismanagement and mounting debts in public universities, citing the UoN and TUK as prime examples of institutions facing severe financial challenges.
“Mismanagement has been a key factor in the mounting debts and financial instability facing institutions like UoN and the TUK. We cannot overlook the role leadership plays in either addressing or deepening these challenges. We are preparing a detailed response regarding the court’s decision to reinstate the degazetted University of Nairobi (UoN) council chairman, Prof Amukowa Anangwe,” the CS told MPs.
Massive bills
“The Ministry of Education will outline the reasons behind his removal, including his decision to block the Principal Secretary’s representative from taking their rightful seat at a council meeting — an act that not only undermined governance but also contributed to the university’s leadership dysfunction," he added.
At the TUK, the cabinet secretary revealed that the institution is burdened with massive bills, including Sh360.1 million owed to contractors and general creditors, Sh4.385 billion in defaulted pension funds, Sh70.2 million in third-party deductions, and Sh6.7 billion in unremitted statutory deductions. Additionally, the university owes Sh305.87 million in bank, Sacco, and insurance deductions, Sh761.08 million in collective bargaining agreement (CBA) arrears, and Sh398.8 million in staff claims.
"We’re collaborating to revive the retirement benefits scheme, which was shut down. If reopening it isn’t feasible, we’ll explore creating a new scheme to transfer resources, ensuring staff receive their pensions when we resume payments in July, “he said.
Mr Ogamba further disclosed that pensioners at TUK lost Sh5 billion after the university’s pension scheme was irregularly wound up by unscrupulous individuals.
mesimiyu@ke.nationmedia.com