Top government officials have challenged public university leaders to overhaul how they manage institutions, warning that outdated systems and heavy debts have put Kenya’s higher education sector on the edge of collapse.

During the first National Retreat for Public University Councils held in Mombasa on Wednesday, Higher Education Principal Secretary Beatrice Inyangala said poor decisions and rigid structures have made many universities inefficient, with billions in unpaid debts choking their operations.

“Most of our universities are in crisis. The time to change our future is now. We must reengineer university management and adopt cost-cutting measures,” she said.

The crisis, which continues to disrupt learning and delay salaries, has left institutions struggling to survive.

Kenyatta University owes Sh12.38 billion, the University of Nairobi Sh12.22 billion, and Jomo Kenyatta University of Agriculture and Technology Sh9.13 billion.

Most of these debts are owed to suppliers, tax and pension bodies, and contractors.

Inyangala urged university council chairs to lead urgent reforms by embracing enterprise models, financial innovation, and tighter risk control measures.

“This can be done by strengthening internal audit and quality assurance departments for the identification and mitigation of risks,” she said.

She said the current approach is no longer sustainable and warned that without bold steps, more universities would be crippled by debt and management failures.

National Assembly Education Committee Chair Julius Melly urged university councils to move away from dependency on government funding and instead grow their own revenue.

“As chairs of your universities, you must look at ways to be financially self-reliant through student enrolment, research grants and enterprise development,” he said. “Universities should no longer be seen solely as academic institutions but as entities capable of generating income.”

President Ruto’s senior economic advisor, Moses Kuria also pressed for radical change in leadership, calling for a business mindset in university management.

“Vice Chancellors should be trained to think like CEOs. If a VC can’t run a business like Safaricom, they shouldn’t be running a university,” Kuria said.

He urged institutions to embrace digital innovation, rethink the role of chancellors, and explore how Artificial Intelligence can be used to drive commercial sustainability.

“We must also rethink the role of chancellors and tap into technologies such as Artificial Intelligence to develop sustainable commercial models,” he said.