SHOCK as Ministry Admits Delayed Capitation Is Crippling Universities and TVETs.
The Ministry of Education has acknowledged that persistent delays in capitation disbursements and inadequate budget allocations continue to place public universities, Technical and Vocational Education and Training (TVET) institutions, and teacher training colleges under significant financial strain.
Education Cabinet Secretary Julius Ogamba made the disclosure while appearing before the National Assembly Public Investments Committee on Governance and Education (PIC-G&E), where the committee reviewed Auditor-General reports covering the 2018/19 to 2024/25 financial years.
According to the Ministry, delayed Exchequer releases from the National Treasury, coupled with budget allocations that fall below institutional requirements, have resulted in cash flow constraints affecting the operations of tertiary education institutions across the country.
Cabinet Secretary Ogamba stated that the Ministry does not retain capitation funds and attributed the delays to insufficient releases from the National Treasury.
“The Ministry does not sit on funds. The challenge is that the resources released by the National Treasury fall significantly below the actual requirements, and when Exchequer releases are delayed, institutions inevitably experience cash flow constraints,” Ogamba told the committee.
The committee, chaired by Luanda Member of Parliament Dick Maungu, examined audit findings that identified delayed capitation, stalled infrastructure projects, weak financial management systems, declining enrolment in TVET institutions, unaccounted government equipment, and increasing financial instability across tertiary education institutions.
During the proceedings, Kilome Member of Parliament Thaddeus Nzambia stated that enrolment in several TVET institutions had declined substantially, with some institutions accommodating fewer than half of their previous student population.
According to Nzambia, institutional administrators have consistently attributed the decline in enrolment to delayed capitation disbursements.
“The principals consistently point to delayed capitation as the major reason students are dropping out. This was a good programme meant to equip young people with technical skills, but the current trend is worrying,” Nzambia said.
Embakasi West Member of Parliament Mark Mwenje questioned the continued financial challenges facing institutions despite previous government assurances regarding the release of capitation funds.
Mwenje noted that public universities are currently facing a funding deficit of Sh28.9 billion, resulting in increased dependence by students on Constituency Development Fund bursaries and financing from the Higher Education Loans Board (HELB).
“Students are under immense pressure, especially when examinations approach. Universities require predictable funding instead of leaving students to depend on bursaries that cannot adequately meet tuition costs,” Mwenje said.
The Ministry of Education disclosed that public universities require Sh70.3 billion for scholarships and grants during the 2025/26 financial year. However, only Sh41.2 billion was allocated, resulting in a funding shortfall of Sh28.9 billion.
The Ministry further revealed that government capitation for TVET institutions has remained at Sh5.2 billion annually despite increasing student enrolment. In addition, TVET institutions are experiencing a cumulative scholarship funding deficit amounting to Sh14.9 billion.
Cabinet Secretary Ogamba informed the committee that 23 public universities were technically insolvent when the current administration assumed office. According to the Ministry, ongoing financial reforms have reduced the number of technically insolvent universities to 11.
“We found 23 universities in the red. Through reforms and timely funding, we have reduced that number to 11, and we are working towards restoring all universities to financial stability,” Ogamba said.
As part of measures aimed at addressing the financial challenges, the Ministry of Education is preparing the proposed Tertiary Education Funding Bill, 2025. The proposed legislation seeks to establish a sustainable financing framework by consolidating tertiary education funding into a single pool for equitable distribution among eligible institutions.
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The Ministry also announced additional administrative measures, including prohibiting public universities and TVET institutions from initiating new development projects before completing existing ones. Priority will be given to infrastructure projects that are at least 85 per cent complete.
In addition, institutions have been encouraged to commercialise idle assets and strengthen partnerships with industry as part of efforts to generate supplementary revenue and improve financial sustainability.
SHOCK as Ministry Admits Delayed Capitation Is Crippling Universities and TVETs.
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