Public Universities face financial strain as student fees arrears hit Ksh 3.17 billion

Kenya’s public universities are struggling to manage billions in student fees, with arrears by current and former students now totalling Ksh3.17 billion, Auditor General Nancy Gathungu has revealed warning that weak debt recovery is putting serious pressure on these institutions.

The University of Eldoret (UoE) owes the most, with Ksh890.9 million in outstanding fees. Of this, Ksh222.6 million has remained unpaid for over a year.

“Management did not explain the measures being taken to recover the long outstanding receivables from the affected student debtors,” Gathungu said. “The university’s debt grew by 172 percent in a single year, yet only Ksh17.8 million has been set aside for potential bad debts.”

At Maasai Mara University (MMARAU), students were allowed to attend classes, sit exams and graduate despite owing fees. The audit also found Ksh12.26 million in unallocated funds from the Higher Education Loans Board (HELB) and government bursaries that had not been credited to student accounts.

“These balances were received from various National Government Constituency Development Funds (NG-CDF), counties and the national government, but were not posted into the students’ accounts and therefore remain unallocated in the records,” Gathungu said.

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Dedan Kimathi University of Technology (DKUT) recorded Ksh584.2 million in arrears, with 21.4 percent dating back to 2010.

Other universities also reported rising debts. Chuka University (CU) had Ksh482.9 million, with Ksh380.3 million accumulated in a single year. Turkana University College (TRUC) owed Ksh161.85 million, representing 88 percent of total debts. Tharaka University (THRKU) allowed students to sit exams despite payment delays, while Machakos University (MCKU) saw debts rise 134 percent to Ksh558 million, mainly due to delays under the student-centred funding model.

The audit also highlighted refunds owed to former students. Dedan Kimathi University holds Ksh47.5 million for graduates from 2007 to 2020, while Maasai Mara University owes Ksh97.8 million, including amounts dating from 2009.

“This was contrary to the University’s fees payment policy, 2018, which stipulated the process of refunding school fees and states that refunds due to overpayment will be paid in full to the sponsor after completion of studies and clearance from the University,” Gathungu said.

The report exposes weaknesses in fee collection and financial management across public universities. Rising arrears, unallocated funds and unpaid refunds could lead to serious cash flow problems, affecting both operations and students’ learning experiences.

By Benedict Aoya