Private universities under Sh 48.8 billion pending bills

The National Assembly Education Committee is probing private universities over mounting financial crisis linked to unpaid government bills.

The MPs also questioned the authenticity of student enrolment data that has led to the accruals. In a meeting held at the Catholic University of Eastern Africa in Nairobi, chaired by

Tinderet MP Julius Melly, brought together the Kenya Association of Private Universities (KAPU) led by its chair, Rev. Prof. Stephen Mbugua.

The engagement comes against a growing concern that private universities, once financially stable institutions are now struggling under the weight of delayed government

payments. KAPU is estimating the outstanding bills to approximately Sh 48.8 billion stems from the government’s 2016 policy shift allowing KUCCPS to place government

-sponsored students in private universities under the Differentiated Unit Cost (DUC) funding model.

“We have submitted details of the pending bills to the National Treasury, the Universities Fund, and the Ministry of Education. The Ministry has previously acknowledged the debt

and we have also presented our case to the Pending Bills Committee,” said Prof. Mbugua. He noted that before 2016, private universities relied on direct admissions and were

“financially stable”, but the DUC disbursement delays had forced institutions to dig into their reserves to keep programmes running.

Melly, however, flagged inconsistencies in the student population data submitted by KAPU, raising doubts over the exact number of government-sponsored students admitted over the years.

“When I look at your documents, you have a very large government-sponsored student population across all private universities,” he said.

“Have these students been ascertained by the Ministry of Education and the Commission for University Education? How many have dropped out and how many are still continuing?”

Baringo North MP Joshua Makilap called for a comprehensive audit of student records since 2016 to ensure transparency in funding and accurate classification of the pending bills.

“We need accurate data. How many students have graduated, how many have deferred, and how many dropped out? This information is crucial as we look into funding and

pending bills,” he noted.

Moiben MP Prof. Phylis Bartoo said without verified enrollment and graduation numbers, effective budgeting for the higher education sector would remain a challenge.

The Committee also questioned the academic preparedness of faculty members in private universities, seeking clarity on how many lecturers lacked PhDs or were currently

pursuing them.

Melly further urged institutions to design niche academic programmes aligned to emerging industry needs, cautioning that both public and private universities had come under

criticism for offering unmarketable degrees.

“A number of universities in Kenya have been blamed for offering unmarketable degree programmes. What are you doing to build your niche?” he asked.

On financial sustainability, Siaya County Women Rep Dr. Christine Odhiambo wanted to know efforts by private universities to raise internal revenue and reduce dependency on

government reimbursements.

“What income-generating activities are you engaged in to supplement your income and become more sustainable?” she posed.

KAPU also appealed for a review of the programme approval charges imposed by the CUE, arguing that the current rate of Sh 320,000 per programme is untenable, especially for

universities running over 100 academic programmes.

The committee directed KAPU to consolidate verified data on government-sponsored students including enrolment, dropouts, deferrals, and graduation trends since 2016 and

submit the records to the Pending Bills Committee of the National Treasury.

“You need to ensure that your pending bills are certified by the National Treasury’s Pending Bills Committee. This Committee will work with you, the Ministry of Education, and the

Treasury to resolve these issues so that private universities can continue offering quality education,” Melly said.

The Committee further instructed KAPU to present proposals on amendments to the Universities (Amendment) Bill aimed at strengthening governance, funding, and programme

quality across the higher education sector.