Private universities are on the edge of collapse after the government failed to release Sh48.8 billion meant to support students it placed in their institutions, leaving thousands of learners with no choice but to drop out or suspend their studies.

Appearing before the National Assembly Education Committee, the Kenya Association of Private Universities (KAPU) painted a grim picture of the ongoing crisis, revealing that only Sh14 billion out of the expected Sh63 billion has been disbursed by the government between 2016 and 2025.

The failure to release the remaining funds has crippled operations in 31 private universities and directly disrupted the education of 9,192 students.

Of the affected students, 2,105 dropped out completely, while another 7,087 were forced to defer their programmes after the institutions could no longer sustain learning without state support.

KAPU Secretary Edwin Simiyu said the government’s delay had pushed universities to dig into their reserves, pushing them further into financial distress.

“While the Government placed students in Private Universities, the process of disbursement of funds to facilitate the teaching of students has not been smooth and efficient. This has forced most of the Private Universities to eat into their reserves to finance the education of government-placed students. This has resulted in the financial crippling of KAPU members. Members are collectively owed billions of shillings (Sh48.8 billion),” Simiyu told MPs.

He added that despite the universities continuing to admit KUCCPS-placed students, there had been no corresponding support to help institutions offer learning services or keep learners in class.

Private universities became reliant on state-sponsored student placements after the 2016 policy shift that allowed all students with a C+ and above to join either public or private universities through KUCCPS.

Simiyu now wants the government to treat all accredited universities equally in terms of funding, noting that learners should be free to choose their preferred institutions and programmes, and still be assured of financing.

“Private universities should be eligible for government funding through student capitation (Higher Education Financing), research grants and infrastructure development support, subject to accreditation and performance benchmarks,” he said.

To reduce the number of dropouts, institutions have tried to intervene by offering academic monitoring, scholarships, and student support workshops, while also improving the overall campus experience. But the situation remains dire.

The numbers laid before Parliament show Methodist University suffered the worst blow, with 998 students dropping out and 1,272 others deferring.

Mt Kenya University had 146 dropouts and 2,833 deferments, while Catholic University reported 200 deferments.

Simiyu said unless the government urgently clears the arrears, private institutions will continue to sink, and more students will lose access to higher education, through no fault of their own.