Kenyan Public Universities Face Mounting Debt Crisis: Pending Bills Double in Two Years

Public universities in Kenya collectively owe statutory bodies and creditors Sh75 billion in pending bills, which has doubled over two years, risking their operations due to accumulating interest. The government’s new funding model, introduced less than a year ago, faces challenges with delays in disbursing funds, hindering its effectiveness. The Universities Fund has received only Sh7.97 billion out of Sh11.9 billion awaited from the government for first-year students.

Although Higher Education Loans Board (HELB) disbursed money for students’ upkeep, the lack of tuition funds from the Universities Fund raises sustainability concerns. Julius Melly, Chair of the National Assembly’s Education Committee, has instructed an assessment of the model’s sustainability. This information emerged during a meeting where universities discussed implementing the competency-based curriculum (CBC). Public universities owe Sh20 billion in unremitted PAYE, Sh24.6 billion in pensions, and Sh10 billion to suppliers. The Ministry of Education aims to clear pending bills in the coming months and is discussing waivers with the Ministry of Finance. Despite plans to waive part of the debts, financial challenges persist, with universities like Kenyatta and Egerton owing billions.