Kenyan Universities Face Crisis Due to Budget Cuts.
Kenyan universities are facing a potential crisis as severe budget cuts threaten the education of thousands of students. The National Treasury’s failure to allocate funds for key universities in the 2024-2025 budget estimates has placed the future of higher education in jeopardy. Notably, students entering their third to sixth years at the University of Nairobi, Moi University, University of Eldoret, and University of Kabianga are at significant risk of dropping out due to the lack of financial support.
The Budget Policy Statement for 2024-2025 initially earmarked significant funds for these universities: Sh1.725 billion for the University of Nairobi, Sh1.3 billion for Moi University, Sh702.7 million for the University of Eldoret, and Sh339.6 million for the University of Kabianga. However, the published budget estimates show a zero allocation for these institutions, putting their thousands of students in a precarious situation.
The Higher Education Loans Board (Helb) is grappling with an Sh11.4 billion deficit, severely limiting its capacity to fund new students. With the current budget, Helb can only support 21,512 incoming students out of the 122,634 expected to join universities in September, leaving 101,122 students without tuition and upkeep loans. This shortfall highlights the dire need for increased funding to support higher education in Kenya.
Operational Challenges for Universities
Public universities are already struggling with over Sh76 billion in pending bills. The budget cuts further strain their financial health, risking insolvency and operational disruptions. The Auditor-General has identified that 23 out of 40 public universities and their constituent colleges are technically insolvent, unable to settle their debts and pending bills.
The financial instability has immediate consequences. For instance, Kenyatta University recently informed its staff that it could not pay their salaries due to delayed government capitation. This situation is likely to be replicated across other institutions, leading to potential strikes by staff and students, which would disrupt academic activities and further destabilize the universities.
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The budget also neglects funding for research, feasibility studies, and project preparation, despite an initial allocation of Sh7.9 million in the BPS. This omission hampers the ability of universities to engage in critical research activities, affecting their contributions to innovation and development.
Government-sponsored students in private universities face uncertainty as the budget remains silent on their funding. This lack of clarity could lead to reduced enrollment and financial challenges for these institutions.
Government’s Response and Future Prospects
The State Department for Higher Education has appealed to the National Assembly for additional funding. In its submission to the Education and Research Committee, the department emphasized the need for adequate resources to maintain high-quality education standards and support the growth of new generation universities. The current funding levels are insufficient to meet the operational needs, including teaching materials, equipment, and adequate staffing.
Last year, the government introduced a new university funding model, where students’ education costs are covered through a mix of scholarships, loans, and bursaries based on need. However, students admitted before this model was introduced continue to be funded through the differentiated unit cost model, which is now inadequately funded. The proposed budget cuts could reduce government support for degree programs to just 30% of their cost, down from the intended 80%, severely impacting the quality of education.
In conclusion, the looming budget cuts in Kenya’s higher education sector pose a significant risk to the stability and quality of universities. Without immediate government intervention to restore and increase funding, the country faces the potential loss of thousands of students from higher education, undermining the progress and future prospects of an entire generation. Addressing these challenges is crucial to ensure that Kenyan universities can continue to provide quality education and contribute to national development.
Kenyan Universities Face Crisis Due to Budget Cuts.
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