Kenya’s Private Universities Demand KSh50 Billion Debt Settlement from Government.
In a significant development within Kenya’s higher education sector, 34 private universities are collectively demanding the settlement of a KSh50 billion debt from the government. This substantial pending bill has accumulated since 2016, following a government initiative to sponsor students in private institutions. The Kenya Association of Private Universities (KAPU) has expressed concerns over the financial strain this debt has imposed on their operations.
In 2016, the Kenyan government launched a program to place and sponsor students in private universities to enhance access to higher education. However, over the years, the government has not fully met its financial commitments under this program, leading to an accumulated debt of approximately KSh50 billion. Although the program came to an end in 2023, students under government sponsorship continue to study in these institutions, further complicating the financial dynamics.
The prolonged non-payment has adversely affected the operations of private universities. Many students now have to secure loans from financial institutions to sustain their educational services. The financial strain has also impacted their ability to invest in infrastructure, research, and community development initiatives. KAPU Chairman, Rev. Prof. Stephen Ngari, emphasized the critical role these institutions play in Kenya’s economic development and urged the government to expedite the settlement of the pending bills.
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This demand arises amidst a broader financial crisis in Kenya’s higher education sector. Public universities are grappling with a cumulative debt of KSh80 billion owed to various creditors and government agencies, including the Kenya Revenue Authority. The financial challenges are not confined to private institutions alone but reflect a systemic issue affecting the entire higher education landscape in the country.
The vice-chancellors of the affected private universities, under the umbrella of KAPU, have been convening to deliberate on strategies to address this financial predicament. They are collectively appealing to the government to honor its financial obligations to alleviate the operational and financial burdens that have beset their institutions. Therefore, the settlement of these pending bills is deemed essential to ensure the sustainability and quality of higher education in Kenya.
The KSh50 billion debt owed to private universities underscores the pressing need for a comprehensive review of funding mechanisms in Kenya’s higher education sector. Addressing this issue is pivotal not only for the financial health of these institutions but also for the broader objective of maintaining and enhancing the quality of higher education in the country. As private universities continue to play a vital role in human capital development, prompt government action to settle these pending bills will be instrumental in sustaining their contributions to Kenya’s socio-economic progress.
Kenya’s Private Universities Demand KSh50 Billion Debt Settlement from Government.
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