MPs probes accountability in Sh3.1 billion University capitation

MPs are pushing for a special audit of the Sh3.1 billion disbursed to private universities, citing concerns over irregularities in the allocation of funds meant for government-sponsored students.

The Public Accounts Committee (PAC), led by Butere MP Tindi Mwale, is scrutinizing the use of the funds allocated in the 2022-23 financial year.

The move follows a report by Auditor General Nancy Gathungu, which flagged multiple inconsistencies in the disbursement process.

Higher Education Principal Secretary Beatrice Inyangala appeared before the committee to respond to the concerns raised over the management of the funds.

According to the audit, Sh201.6 million was given to 15 private universities for 4,521 students who were not placed through the Kenya Universities and Colleges Central Placement Service (KUCCPS).

The placement body is responsible for assigning government-sponsored students to institutions of higher learning.

The report further revealed that Sh412 million was allocated to support 9,489 students who had exceeded the duration of their academic programs. Additionally, Sh17.7 million was disbursed twice, Sh354 million was sent to students who had already graduated, and Sh53.6 million was allocated to students who had deferred their studies.

Edwin Wanyonyi, the Acting Chief Executive Officer of the Universities Fund, admitted that private universities had been reluctant to provide clear information.

“The fund has written to the universities; some have disputed while some have indicated that the excesses be deducted from their capitations,” Wanyonyi told MPs.

In her defense, PS Inyangala argued that the audit report failed to account for student transfers that took place after the initial placement.

“During its review, the Office of the Auditor General relied on KUCCPS initial placement data without capturing subsequent transfers (institutional transfers) from public universities to private universities or even from one private university to the other,” she explained.

She further noted that some students had deferred their studies due to various reasons, including medical issues, which may have affected the audit findings.

However, the committee members were not convinced by her explanation. They insisted that a special audit was necessary to determine the exact status of the Sh3.1 billion.