Public universities are struggling to stay afloat due to a massive funding shortfall that threatens to halt academic programmes, stall projects, and force some institutions to shut down, says the government.

The financial crisis has worsened as institutions grapple with an urgent need for additional funding.

The State Department for Higher Education and Research has requested an extra Sh6.48 billion through the Supplementary Appropriation Bill, alongside Sh9.63 billion in appropriations.

University education accounts for Sh6.47 billion of the request, while only Sh20 million is earmarked for research, science, technology, and innovation.

Education Principal Secretary Dr Beatrice Inyangala, while addressing the National Assembly Education Committee, warned that universities are in a dire state due to budget deficits. She said that a shortfall of Sh13.7 billion threatens the sustainability of critical academic programmes and student support.

“For us to keep these programmes running and ensure students complete their studies, we urgently need additional funding. Without this, the situation is dire,” Dr Inyangala said.

She noted that the first cohort of KCSE 2023 faces a funding gap of Sh12.3 billion, leaving many students without financial aid.

This year alone, a shortfall of Sh4.9 billion has affected new applicants, while continuing students require an additional Sh4.8 billion. Another Sh1 billion is needed to support ongoing students, contributing to the overall deficit.

“This is very serious. If this money is not available, universities might close by the last quarter of this financial year. We are experiencing a lot of problems, strikes are becoming more frequent, and students are dropping out—not because they lack ability, but because they lack financial support,” she said.

Dr Inyangala also highlighted that scholarships are under pressure, with a Sh11.2 billion deficit.

The funding gap stems from the 2022 cohort, where Sh1 billion was allocated but not disbursed. For the current cohort, Sh13.9 billion was required, but only Sh4.2 billion was provided, leaving a deficit of Sh9.6 billion.

“The current allocation stands at Sh23 billion, which represents only 38.75 per cent of the required amount. If universities were to be funded at a 50 per cent level, an additional Sh6 billion would be needed to adequately support them,” she said.

Private universities have received only 4 per cent of their required funding, with a shortfall of Sh1.6 billion.

Dr Inyangala also called for Sh1.5 million to review the national technology policy and support the national research and development agenda. Additionally, she requested Sh20 million for staff training, emphasizing the importance of investing in personnel despite financial challenges.

“We need to invest in our people. Training our staff is critical to ensure the quality of education remains high despite these financial constraints,” she said.

Another major concern is the accumulation of unpaid bills, particularly those related to foreign travel. She revealed that some of these bills have been outstanding for over a year, with no budget allocated to clear them.

On capital projects, Dr Inyangala noted that minimal funding has put many initiatives at risk. Pending bills initially allocated funds were redirected in January, leaving universities with an estimated Sh8 billion in unpaid obligations, down from Sh14 billion.

The University of Nairobi was allocated Sh7.92 million for a judicial project coordination centre, which is ongoing. However, more expenditure requests are under review to ensure the project's successful completion.

“This is our time to fix these issues. We can’t continue operating like this—our institutions are at risk, and so is the future of our students and the country,” Dr Inyangala said.