Private universities have raised alarm over an escalating financial crisis after the government failed to release Ksh58.8 billion owed for educating government-sponsored students across eight academic years, with fresh disclosures showing Mount Kenya University and Kabarak University bearing some of the biggest unpaid allocations.
Appearing before the National Assembly Committee on Education, the Kenya Association of Private Universities (Kapu) said the delayed disbursements, dating back to 2016/2017, have pushed institutions into severe financial strain, forcing many to rely on dwindling reserves to keep operations running.
Some of the hardest-hit institutions include Mount Kenya University (Ksh12.9 billion), Kabarak University (Ksh6.8 billion), KCA University (Ksh6.67 billion) and the Catholic University of Eastern Africa (Ksh4.3 billion).
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Kapu warned that the non-payment is now threatening the stability of a sector that has long supported national training, research and innovation.
The association linked the financial blow to policy changes introduced in 2016, which placed all qualifying students through the Kenya Universities and Colleges Central Placement Service (KUCCPS).
This shift made private universities dependent on timely government funding support that has increasingly declined.
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Data from the Universities Fund shows that allocations to private universities have dropped sharply from Ksh3.175 billion in 2022/2023 to Ksh1.775 billion in 2023/2024, and further down to Ksh575 million in the current financial year. The number of students funded has also fallen significantly.
Even as concerns escalate, the Ministry has yet to publicly address the funding dispute.
Kapu urged Parliament to compel the government to release funds concurrently with student placement to avoid recurring cash flow disruptions. The association further criticised the taxation of tuition fees, saying it undermines efforts to provide affordable, quality education.
By Mercy Kokwon
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