Funding delay forces 2,105 students out of school, over 7,000 suspend studies

More than 2,000 students placed in private universities by the government have dropped out of school, while over 7,000 have been forced to defer their studies, after a massive funding shortfall left the institutions unable to support their learning.

A total of 2,105 students exited their courses, and 7,087 others deferred, after the government failed to remit Sh48.8 billion owed to 31 private universities for learners placed under the regular programme by the Kenya Universities and Colleges Central Placement Service (KUCCPS).

The Kenya Association of Private Universities (KAPU) said the delayed funds had left many institutions struggling to stay afloat, with students bearing the brunt.

Documents tabled before the National Assembly Education Committee show the government has only released Sh14 billion out of the Ksh63 billion owed between 2016 and 2025.

The failure to release the remaining funds has disrupted learning and forced institutions to operate under tight financial strain, despite continuing to admit government-sponsored students.

KAPU Secretary Edwin Simiyu told the committee that private universities became more dependent on KUCCPS placements following a 2016 policy change that allowed all students with a C+ and above to join either public or private universities under the state programme.

“While the Government placed students in Private Universities, the process of disbursement of funds to facilitate the teaching of students has not been smooth and efficient. This has forced most of the Private Universities to eat into their reserves to finance the education of government-placed students. This has resulted in the financial crippling of KAPU members. Members are collectively owed billions of shillings (Sh48.8 billion),” he said.

According to Simiyu, the funding delay has not only strained institutions but also robbed thousands of students of their right to education.

He said the association had already submitted the pending claims to the government’s Pending Bills Verification Committee for review.

He added that private universities should not be excluded from state support, arguing that once a student is placed in an accredited institution, funding should automatically follow them.

“Private universities should be eligible for government funding through student capitation (Higher Education Financing), research grants and infrastructure development support, subject to accreditation and performance benchmarks,” Simiyu said

To respond to the crisis, Simiyu said some universities had introduced measures such as academic monitoring, offering scholarships, organising student workshops, forming academic linkages, and improving campus experiences to help students stay in school.

However, the extent of the damage is already clear. At Methodist University, 998 students dropped out while 1,272 deferred their studies.

Mt Kenya University reported 146 dropouts and 2,833 deferrals, while 200 students deferred their studies at Catholic University.

Simiyu said students should not be punished for policy and funding delays that are beyond their control.

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• Funding delay forces 2
• 105 students out of school

He urged Parliament to push the government to clear the outstanding payments and ensure all learners can access and continue higher education in any institution of their choice.