Unchecked growth of universities leaves sector drowning in debt

A parliamentary committee has raised concerns over the rapid expansion of universities and Technical and Vocational Education and Training (TVET) institutions, warning that it has contributed to bloated staffing and unsustainable operations.

The Public Investments Committee on Governance and Education, chaired by Bumula MP Jack Wamboka, told the Ministry of Education that public universities were now struggling to meet basic financial obligations due to poor planning and increasing staff numbers.

Citing the Technical University of Kenya (TUK) as a key example, the committee noted that the institution has faced constant financial problems since it was upgraded to a full university in 2013.

TUK generates about Kshs. 207 million monthly, including Sh63.3 million in capitation, but its monthly needs stand at Kshs. 314 million.

Its wage bill alone totals Sh 272 million per month.

Due to the shortfall, the university has not been able to pay statutory and third-party deductions such as pensions, PAYE, housing levy, union dues, bank loans, and insurance premiums.

This has resulted in pending bills and an accumulated debt of Kshs. 12.99 billion, some of it dating back to the 2017–2021 Collective Bargaining Agreement period.

Moi University is also in a similar financial crisis.

The Committee said the institution is unable to meet daily operational costs and has not remitted key deductions from salaries.

The MPs were told that as of March 31, 2025, its pending bills stood at Sh 9.2 billion.

Of this amount, around Sh4.2 billion is owed to the Pension Scheme and Provident Fund, with penalties and interest included.

The Committee said this situation has triggered multiple staff strikes at the university.

Lawmakers further raised concerns over governance at public universities, particularly at Kenyatta University, where they questioned the return of Vice-Chancellors who had previously proceeded on leave.

They pointed to the case of Prof. Paul Wainaina, who took leave on April 15, 2024, to use up his 202 accumulated leave days. The leave was to end on January 30, 2025.

However, the University Council later extended his leave.

The Committee was told that Prof. Wainaina maintains that his leave ended on January 30 and insists he should return to his role.

He also argued that he should not be forced to retire as he is on a fixed-term contract that runs until January 26, 2026.

The lawmakers expressed concern that many staff members were holding acting positions for extended periods, in violation of regulations.

They cited the case of Kenyatta University’s acting Vice-Chancellor, who has served in the position for a year.

In response, Education Cabinet Secretary Julius Migos Ogamba assured the Committee that steps were being taken to stabilize the sector.

He said the Ministry, in partnership with TUK, had developed a recovery plan that includes a Direct Payroll Support of Kshs. 145 million, to be disbursed from January to June 2025.

Ogamba said the Ministry will also offer conditional grants to cover gross salaries and statutory deductions.

The funding will be spread out across the 2025/2026 to 2031/2032 financial years.

He further revealed that TUK is expected to contribute towards settling liabilities linked to its now-defunct staff retirement benefits scheme, particularly in the 2025/2026, 2028/2029, and 2029/2030 financial years.

On Moi University, the CS said the Government had released Sh500 million to cater to staff needs by January 2025.

He said that a phased repayment plan had been drawn to settle Moi University’s Sh8.6 billion in debts.

"We are working with all stakeholders in the university sub-sector to ensure that our universities are run efficiently and sustainably so that they do not run into financial crises as we have seen before," Ogamba said.

"A key part of this is good corporate governance, which we are working to instill by appointing competent and suitable persons as Council members and as senior management in our public universities," he added.

On the matter of Prof. Wainaina, CS Ogamba clarified that the issue is currently in court.

"As a Ministry, we have taken the position that we will be guided by the decision of the Court once the matter is concluded,” he said