Private Universities Seek Sh47bn from Government, Cite Unpaid Bills Since 2016

Private Universities Seek Sh47bn from Government, Cite Unpaid Bills Since 2016.

Private universities are pressing the government to clear an outstanding debt of Sh47.1 billion, which they claim is due for educating government-sponsored students since the 2016/2017 academic year.

The amount constitutes part of the pending bills owed by the government for various services provided.

In 2016, following reforms in the Kenya Certificate of Secondary Education (KCSE) that reduced the number of university qualifiers, the government introduced a program to place and sponsor students in private universities.

However, the government failed to remit 80% of the tuition fees for these students, leading to some being discontinued.

Private universities were to receive a total of Sh62.4 billion over the period but only Sh15.2 billion was disbursed, leaving a balance of Sh47.1 billion.

A demand letter drafted on November 5 by Edwin S. Wabuge on behalf of the Kenya Association of Private Universities (KAPU) outlines the issue, listing 31 private universities that hosted 320,892 government-sponsored students during this period.

Payment Demands and Legal Action

Addressed to key officials, including the Education and Treasury Cabinet Secretaries, the Universities Fund CEO, and the Attorney-General, the letter was stamped on November 13. KAPU has given the government 30 days to settle the debt or propose a payment plan.

The letter claims the government has consistently shortchanged private universities by disbursing funds piecemeal and failing to honor its commitments fully.

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The demand adds to the government’s financial pressures, having recently agreed to a Sh9.7 billion pay deal with public university lecturers, to be paid over three years.

The letter highlights the government’s obligation to disburse funds through the Universities Fund for students placed in private universities via the Kenya Universities and Colleges Central Placement Service (Kuccps).

It criticizes the government for discriminating against private universities by allocating fewer resources than to public institutions, violating Article 27 of the Constitution.

In recent admission cycles, no government-sponsored students were placed in private universities. Students now finance their education independently and may access loans from the Higher Education Loans Board (Helb), but they do not qualify for scholarships under the new higher education funding model.

Institutions Owed

KAPU notes that private university students are equally deserving as those in public universities.

The debt, calculated up to June 2023, includes significant sums owed to institutions such as Mt Kenya University (Sh10.2 billion), Kabarak University (Sh5.8 billion), and KCA University (Sh4.6 billion).

Other top claimants are Kenya Methodist University (Sh3.9 billion), the Catholic University of East Africa (Sh3.7 billion), and several others, collectively totaling billions.

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On February 6, 2024, Universities Fund CEO Geoffrey Monari told the Pending Bills Verification Committee that the Fund had pending bills of Sh31.4 billion as of June 30, 2022, which included debts owed to private universities.

KAPU maintains that the government’s neglect of its financial commitments has left private universities in a precarious position.

Private Universities Seek Sh47bn from Government, Cite Unpaid Bills Since 2016.

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