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Private universities warn of crisis as State fails to pay Sh48.8 billion

Private universities warn of crisis as State fails to pay Sh48.8 billion
Graduands during a past Daystar University graduation ceremony at Athi River campus. PHOTO/FILE
In Summary

The association further appealed for more funding towards research and innovation, terming it key to Kenya’s development goals.

Private universities have urged Members of Parliament to intervene and compel the government to release Sh48.8 billion owed to them for hosting government-sponsored students, warning that the prolonged delays are crippling operations and affecting service delivery in the institutions.

Appearing before the National Assembly Committee on Education at Parliament Buildings, the Kenya Association of Private Universities (KAPU) said the debt, accumulated over several years, had severely strained their cash flow and made it difficult to sustain academic programmes.

KAPU chairperson Stephen Ngari led the team during the session chaired by Kasipul Kabondo MP Eve Obara.

“This is part of our contribution to national development,” said Ngari, adding that many private universities offer programmes at lower costs than public institutions.

KAPU told the committee that the Sh48.8 billion was owed as of June 2024 and arose from the years when the government placed students in private universities under its sponsorship programme.

“While the government no longer places new students in private universities under sponsorship, it still owes our institutions a staggering Sh48.8 billion as at June 2024,” the association said.

They asked MPs to push for legislation that would ensure funds are disbursed at the time of student placement in the future to avoid cash flow problems that disrupt learning and administration.

They also criticised the taxation of tuition fees, saying it undermines the delivery of affordable, quality education.

“If a university records a surplus, we are willing to pay taxes. But taxing the very fees that support quality education delivery undermines the system,” KAPU said.

The association further appealed for more funding towards research and innovation, terming it key to Kenya’s development goals. They cited delays and inefficiencies in accessing research grants and called for a clear legal framework to manage the distribution of such funds.

However, MPs challenged KAPU to demonstrate accountability in their use of public money.

Kitutu Masaba MP Clive Gisairo expressed concern that some institutions had shifted the burden of unpaid sponsorship to students, leading to increased dropouts.

Luanda MP Dick Maungu questioned the oversight mechanisms in place, asking, “How do you assure this Committee that the public funds you receive are used appropriately, considering we do not exercise direct oversight over private universities?”

Nyamira County MP Jerusha Momanyi demanded a detailed breakdown of the debts owed to each institution and asked what steps the universities had taken to recover the money.

Narok County MP Rebecca Tonkei urged KAPU to present clear proposals for legislative amendments and form a team to work with the Committee in drafting policy reforms.

Baringo North MP Joseph Makilap questioned whether the association had raised the matter with the National Pending Bills Committee and also raised concerns about student dropouts linked to drug abuse, urging the institutions to strengthen preventive measures.

In their response, KAPU leaders explained that many students leave without formally withdrawing, which makes tracking dropouts difficult. They added that academic deferments were being managed and that most affected students were expected to resume learning when ready.

KAPU insisted that private universities play a critical role in the higher education sector and that without timely funding and proper policy support, their ability to support national development would be severely undermined.

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