MPs question escalating university pending bills now at Ksh98 Billion

Members of the National Assembly Committee on Education have raised alarm over the rising pending bills in public universities, which have now hit Ksh98.06 billion as of December 31, 2025.

Official documents tabled before the Committee show that there is no provision for settling the debt in the upcoming financial ceilings, raising concerns about the financial stability of the higher education sector.

The issue emerged during scrutiny of the State Department for Higher Education’s Supplementary Estimates for the 2025/26 financial year.

Appearing before the Committee, Principal Secretary Beatrice Inyangala defended the proposed Ksh14.36 billion budget adjustment, even as lawmakers pressed for accountability.

Committee Chairperson Julius Melly warned that the State Department risks insolvency if urgent measures are not taken to contain the ballooning debt.

“Two years ago, pending bills stood at Ksh15 billion. Today, they have hit Ksh60 billion and are now at Ksh98 billion. You must explain to this country how these obligations keep rising. At this rate, the State Department will be insolvent,” Melly cautioned.

Lawmakers also scrutinized funding to private universities, where a historical deficit of Ksh60.28 billion has accumulated under the Differentiated Unit Cost (DUC) model.

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The Higher Education Loans Board (HELB) was highlighted as another area of concern, with a cumulative funding deficit of Ksh43.6 billion. As a result, more than 453,000 eligible students are currently unable to access financial support.

In addition, MPs questioned stalled infrastructure projects across universities, criticizing continued allocation of funds to new developments while existing ones remain incomplete.

The State Department listed nine stalled projects across four institutions, including University of Nairobi, Moi University, Egerton University, and Laikipia University, with some projects recording completion rates as low as 0.31 percent.

MP Clive Gesairo criticized the prioritization of new infrastructure over student support programmes. He questioned why resources were being directed toward new projects instead of supporting HELB or partnering with other government departments to address student accommodation needs.

The Committee also demanded a clear strategy to address mounting debt in private universities. On policy direction, MP Nabii Nabwera questioned the continued placement of government-sponsored students in private institutions despite available capacity in public universities.

In response, PS Inyangala stated that the government had halted new placements to private universities, but noted that students already enrolled remain eligible for HELB funding.

The Committee has now directed the State Department to submit a verified list of pending bills and provide clearer justification for the supplementary budget allocations, as pressure mounts to restore financial stability in the higher education sector.

By Obegi Malack