The National Assembly Committee on Education has commenced an investigation into the Universities Fund Board (UF) following the discovery of significant pending bills in Nairobi County.
This development is poised to impact the national higher education system.
During an intense oversight visit to the agency’s headquarters, legislators uncovered a complex web of financial discrepancies and operational hurdles that demand immediate attention.
Dr. Edwin Wanyonyi, the Acting CEO of the Universities Fund, painted a stark picture of the agency’s financial situation, revealing that despite receiving a substantial Ksh16.5 billion for scholarships in the current financial year, a staggering funding deficit of Ksh9.6 billion persists.
“Universities Fund received Ksh16.5 billion for student scholarships and Ksh342 million for operational expenses. With a deficit of over Ksh9.6 billion,” Dr. Wanyonyi stated.
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The Committee’s alarm escalated significantly upon learning that outstanding bills owed to both public and private universities have now crossed the Ksh72.2 billion mark.
A particularly contentious point was the revelation that private institutions, despite having considerably fewer students, are reportedly owed almost the same amount as their public counterparts.
MP Nabii Nabwera, clearly agitated, directly challenged these figures: “Are you sure about your figures? How can the amount owed to private universities be almost equal to what is owed to public ones when the student numbers don’t match? Even the Auditor-General’s special audit report flagged overpayments to private universities.”
The Acting CEO was immediately directed to provide a detailed report, clarifying these discrepancies and outlining the precise amounts owed to each institution.
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The Committee also delved into the efficiency of the funding ecosystem where MP Phyllis Bartoo raised a crucial question about potential operational overlap.
“From your submissions, this feels like a duplication of HELB’s work.” Bartoo stated
Dr. Wanyonyi, however, promptly clarified the distinct mandates of the two entities. He explained that the Higher Education Loans Board (HELB) is responsible for administering student loans, while the Universities Fund focuses on scholarships and direct capitation to institutions under the New Funding Model (NFM).
This NFM, rolled out in 2023, is designed to be student-centric, basing funding on individual financial needs and academic programs. The Fund further elaborated that for the 2024/25 financial year, the NFM facilitated funding for 559,636 students, with a colossal Ksh40.5 billion disbursed. This included Ksh16.9 billion under the NFM and Ksh23.6 billion under the Differentiated Unit Cost (DUC) model across 40 public universities.
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While the Universities Fund highlighted its advancements in digital transformation, including the launch of a new data management system and a secure institutional portal aimed at enhancing transparency and efficiency, Committee Members expressed significant frustration over persistent student difficulties in accessing the portal.
“What are you doing to improve the interface with students? Our children struggle to access the system, it sometimes takes over a week,” Mary Emaase pointed out, echoing widespread concerns.
The Committee also demanded urgent clarification on the application of equity and marginalization metrics in funding decisions, and the extent of UF’s collaboration with key educational bodies like HELB and the Kenya Universities and Colleges Central Placement Service (KUCCPS).
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Despite acknowledging the Fund’s commendable progress in implementing the student-centred model and expanding access to university education, legislators underscored that unresolved financial issues and inherent institutional capacity gaps remain significant hurdles.
Dr. Wanyonyi candidly admitted that the Fund is currently operating with only 60% of its approved staffing and is still awaiting approval for revised salary structures, further illustrating the operational challenges.
In a decisive move, the Committee on Education has directed the Universities Fund to submit a comprehensive report on all pending bills and to meticulously reconcile its data with the Auditor-General’s findings, promising to escalate the critical matter directly to the Ministry of Education and the National Treasury.
By Cornelius Korir
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