Ogamba: State needs Sh100b for universities as admissions hit record high

 The government is grappling with how to finance the highest-ever number of university qualifiers as concerns mount over the sustainability of the student-centred Funding Model.

Education Cabinet Secretary Julius Ogamba, speaking at the Second Biennial Conference on Funding Higher Education, said the number of students qualifying for university admission surged to 246,391 in the 2024 Kenya Certificate of Secondary Education (KCSE) exam—an increase of 45,258 compared to 2023.

 "We will require Sh25.85 billion to fund first-year students in the 2025/2026 financial year alone. Over four years, this figure rises to Sh100 billion," Ogamba said.

 The CS noted that while the student-centred Funding Model had eased some financial strain on universities, outstanding debts remained a challenge, with pending bills standing at Sh72 billion. This figure has dropped from a peak of Sh75 billion following the introduction of the model in May 2023.

 A government-appointed National Committee has completed its review of the funding model and will submit its findings to President William Ruto. The committee’s recommendations will influence future university financing decisions, including whether all 2024 qualifiers will receive full loans and scholarships.

 "The question is whether we can afford to fully fund all university qualifiers or if we should determine an optimal number that the government can sustain," Ogamba said. "We must also explore alternative funding mechanisms to reduce reliance on the exchequer."

 The conference, held at Lake Naivasha Resort, brought together key stakeholders, including university vice-chancellors, policymakers, and funding agencies. Discussions focused on financial sustainability, alternative revenue streams, and inclusion strategies to ensure equitable access to higher education.

 

Ogamba urged universities to pursue innovative financing, including endowments, public-private partnerships, and alumni contributions. He also emphasised financial accountability, warning against mismanagement of funds.

 "We must harness innovation and entrepreneurship to transform universities into hubs of economic and social development. Effective financial management is non-negotiable," he said.

 The Ministry of Education has assured students and parents that funding will be available, and placement processes will proceed as scheduled. However, stakeholders agree that long-term reforms are needed to address funding gaps and ensure the sustainability of higher education financing in Kenya.