Govt headache as private universities demand Sh47.1 billion payment

The government is in a tight financial spot as private universities demand payment of Sh47.1 billion in unpaid fees for government-sponsored students dating back to the 2016/2017 academic year.

Among the claimants, Mount Kenya University leads with the highest amount, Sh10.2 billion, followed by Kabarak University at Sh5.8 billion, KCA University at Sh4.6 billion, Kenya Methodist University at Sh3.9 billion, and the Catholic University of East Africa at Sh3.7 billion.

Other significant claims include the University of Eastern Africa, Baraton (Sh2.7 billion), Zetech University (Sh2.4 billion), Presbyterian University (Sh2 billion), St Paul’s University (Sh1.7 billion), and Africa Nazarene University (Sh1.4 billion).

The debts stem from the government’s failure to fully pay 80 per cent of tuition fees for students it placed in private universities under a programme introduced in 2016.

In 2016, the government introduced a programme to sponsor students at private universities after a sharp decline in the number of university qualifiers due to reforms in the Kenya Certificate of Secondary Education (KCSE) exams.

However, the government failed to fully meet its obligation to pay 80 per cent of the tuition fees for students placed in private universities, leading to several institutions discontinuing students due to the lack of funding.

Over seven years, the 31 private universities that hosted a total of 320,892 government-sponsored students during the period, expected Sh62.4 billion from the government, but received only Sh15.2 billion, leaving a disputed balance of Sh47.1 billion.

Demand letter

According to Nation, a demand letter was issued on November 5 and signed by Edwin S Wabuge on behalf of the Kenya Association of Private Universities (KAPU), the institutions gave the government a 30-day deadline to either pay the amount or propose a settlement plan.

The letter which was acknowledged by the government on November 13, was addressed to key government officials, including the Cabinet Secretaries for Education and the National Treasury, as well as the Principal Secretaries for Higher Education and Treasury.

KAPU's letter stresses that the government's responsibility was to disburse funds through the Universities Fund for all students placed at private institutions by the Kenya Universities and Colleges Central Placement Service (KUCCPS).

"The disbursement was based on the Universities Fund Criteria for Allocation of Funds to Universities," reads the letter.

The letter also highlights concerns over the unequal treatment of private university students.

"Our client further notes that the students placed in private universities are not any less than their counterparts in public universities. The non-alignment in the allocation of resources by the government for all its students is discriminative and in utter violation of Article 27 of the Constitution of Kenya, 2010," reads the letter.

KAPU has indicated that the claimed amount reflects the debt up to June 2023.

However, sources within the Higher Education sector indicated to Nation that no official response has been received from the government as of yet.

The new demand from private universities adds to the government's financial challenges, which already include a recent Sh9.7 billion agreement to settle a pay dispute with lecturers in public universities.

The lecturers had been on strike, and the payment would be spread over three years.