Private universities demand Sh58.8 bn debt from State

By Newsflash Reporter

Private universities have raised the alarm over what they describe as a severe financial crisis, urging the government to settle Sh58.8 billion in tuition fees owed.

According to the institutions, delayed payments spanning the 2016/2017 to 2023/2024 academic years have left several universities struggling to meet operational costs and maintain educational standards.

Appearing before the National Assembly Committee on Education, the Kenya Association of Private Universities (Kapu) warned that non-payment is seriously affecting a sector that has historically complemented public universities in producing skilled graduates and driving research, innovation, and economic growth.

“The delayed release of funds has forced most private universities to dip into their reserves to finance government-placed students. This has financially crippled our institutions. We are collectively owed Sh58.8 billion. This is not just a financial matter—it threatens the sustainability of private higher education in Kenya,” said Prof. Stephen Mbugua Ngari, Kapu chairperson.

The association noted that Mount Kenya University is owed Sh12.9 billion, Catholic University of East Africa Sh4.3 billion, KCA University Sh6.67 billion, and Kabarak University Sh6.8 billion.

“Investments in higher education are not for profit but for the public good. Revenues are reinvested to improve quality, research, and student services. Private universities have complemented government efforts since before independence, producing skilled graduates who serve both the public and private sectors,” Prof. Ngari added.

Despite repeated inquiries, education officials remained silent, failing to respond to promises of feedback. Although Education CS Julius Ogamba had assured the Nation that Higher Education PS Beatrice Inyangala would respond, she did not, and multiple calls and messages went unanswered.

Declining funding and policy challenges

Data from the Universities Fund shows funding for private universities has been declining. In 2019/2020, private universities received Sh2.5 billion for 29,729 students. The allocation rose to Sh3.375 billion in 2021/2022, funding 61,541 students. However, from 2022/2023, support dropped—Sh3.175 billion, then sharply to Sh1.775 billion in 2023/2024, and further down to Sh575 million in 2024/2025. The number of funded students fell from 89,664 in 2022/2023 to 59,514 in 2024/2025.

Kapu highlighted that policy changes in 2016, which mandated the placement of all qualifying students through the Kenya Universities and Colleges Central Placement Service, have made universities dependent on timely government disbursements. The association urged Parliament to ensure funds are released concurrently with student placement to avoid future cash-flow disruptions.

The association also criticised the taxation of tuition fees, saying it undermines affordable, quality education. “If a university records a surplus, we are willing to pay taxes. But taxing the very fees that support quality education undermines the system,” Kapu stated.

Finally, the association appealed for increased funding for research and innovation, which they described as essential for improving educational outcomes and sustaining Kenya’s higher education sector.