MPs probe misallocation of Sh883m public funds to private universities

The National Assembly Public Investment Committee on Governance and Education has summoned various education bodies following an Auditor General report revealing the misallocation of funds on private universities.

The audit report revealed a staggering sum of Sh883.3 million had been used to fund students who had already graduated from private universities over the past six years.

Scheduled to appear before the committee next Wednesday are key figures including directors from the Kenya Universities and Colleges Central Placement Service (KUCCPS), the Education Principal Secretary, and representatives from the umbrella body of private universities.

The committee, under the leadership of Chairperson Wanami Wamboka, MP for Bumula, aims to scrutinize the authenticity and efficacy of public investments, particularly concerning the allocation of public funds within the country's higher education institutions.

Wamboka said they are concerned about the lack of accountability for public funds and the denial of opportunities for public universities.

He noted that despite the private universities receiving funds from the government, they have never been audited by the Auditor General which reveals a lack of accountability for public funds.

“It was also noted that private universities register students from the Government Sponsored Program denying public universities with capacity the ability to enrol such students," he said.

“…With the recommendation that the commitment should fully equip public universities with students and resources, the committee held a meeting with the Principal Secretary, State Department for Higher Education and Research and the Auditor-General on February 28, 2023, on capitation funds to private universities, resulting in a request by the committee for a special audit of the same since the start of the program in 2016/2017 financial year,” she added.

Operations of funds

The report interrogated operations of funds disbursed to private universities from the financial year 2016/2017 to 2022/2023.

According to the audit report, 15 universities received over Sh200 million under the programme but proceeded to fund some 4,521 students not placed by the Kenya Universities and Colleges Central Placement Service (KUCCPS).

Gathungu has directed the private universities to refund the money, terming the payments as irregular.

“The audit reveals that funds amounting to Sh201,638,928 were disbursed to 4,521 who are non-bonafide GSS students in the private universities as they were not placed by KUCCPS,” reads the report.

One of the private universities has been ordered to refund Sh47,218,801 after sponsoring some 1,042 non-Government Sponsored Students (GSS). Another one will repay Sh57,392,027 for 1,331 students, and a third Sh3,745,653 for 53 students.

In total, the institutions are on the spot for funding a total of 9,489 students at Sh412.7 million for periods exceeding the duration of academic programmes.

Gathungu also noted that there were discrepancies between the State Department and university records on disbursements.

She said the state department's financial statements indicated Sh15,762,573,515 as having been disbursed to the 32 private universities for the period under review while the individual university's records provided for audit, indicated that Sh15,600,208,031 was received, resulting in an unexplained variance of Sh162,365,484.

“The State Department should therefore account for the Sh162,365,484 indicated as disbursed to the private universities but not received. The Government should also formulate policy to guide the implementation of capitation funds for government-sponsored students in private universities. The policy should include provisions for minimum and maximum funding levels based on a student's needs and program duration among other critical matters,” reads the report.