The Ministry of Education has admitted that persistent delays and inadequate disbursement of capitation funds have plunged public universities, Technical and Vocational Education and Training (TVET) institutions and teacher training colleges into financial distress.
Education Cabinet Secretary Julius Migos Ogamba acknowledged the funding challenges while appearing before the National Assembly Public Investments Committee on Governance and Education (PIC-G&E), where lawmakers questioned the ministry over stalled projects, declining student enrolment and mounting debts across tertiary institutions.
Ogamba, who appeared alongside Higher Education Principal Secretary Dr. Beatrice Inyangala, TVET Principal Secretary Dr. Esther Thaara Muoria, Universities Fund Acting Chief Executive Dr. Edwin Wanyonyi, and Higher Education Loans Board (HELB) Chief Executive Geoffrey Monari, was responding to Auditor-General’s reports covering the 2018/19 to 2024/25 financial years.
The audit reports highlighted delayed capitation, stalled infrastructure projects, weak financial management, declining enrolment in TVET institutions, unaccounted government equipment and growing financial instability across public institutions.
MPs raise concerns over funding crisis
Members of Parliament painted a bleak picture of institutions struggling with shrinking enrolment, unpaid bills and abandoned development projects.
Kilome MP Thaddeus Nzambia said enrolment in several TVET institutions had dropped significantly, with some colleges recording a decline from about 800 students to barely 300, while others had fallen from over 700 learners to about 200.
He attributed the decline to delayed capitation, saying many students were unable to continue with their studies.
“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 MP Mark Mwenje questioned why institutions continued experiencing financial constraints despite government assurances that capitation had been released.
He also raised concerns over a Sh28.9 billion funding gap facing public universities, noting that many students now depend on Constituency Development Fund bursaries and HELB loans to finance their education.
“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.
Lunga Lunga MP Chiforomodo Mangale Munga questioned why institutions continued initiating new projects while older ones remained incomplete despite consuming billions of shillings.
Kasipul MP Boyd Were cited Jaramogi Oginga Odinga University of Science and Technology, where projects worth more than Sh3 billion have stalled for years, raising concerns over value for money.
Committee Chairperson and Luanda MP Dick Maungu directed the ministry to strengthen oversight and ensure institutions complete ongoing projects before embarking on new developments.
He also questioned why some colleges were storing hundreds of unused sewing machines while neighbouring institutions lacked similar equipment.
Ministry blames budget cuts
In response, Ogamba admitted that the Ministry of Education has consistently received less funding than requested from the National Treasury, resulting in annual deficits.
“The challenge has been that whatever amount we request, because of financial constraints, we do not receive the full allocation. That creates annual deficits, except in the 2025/26 financial year where TVET capitation was fully disbursed as budgeted,” he said.
The Cabinet Secretary said the Government is preparing the proposed Tertiary Education Funding Bill, 2025, which seeks to establish a sustainable financing framework by consolidating education funding into a single pool for equitable distribution.
He added that the ministry has adopted a policy requiring institutions to complete existing projects before commencing new ones, with priority being given to developments that are at least 85 per cent complete.
Ogamba said contracts for stalled projects caused by non-performing contractors would be terminated after legal review, with recovery proceedings initiated where public funds had been lost.
Universities recovering from financial distress
The Cabinet Secretary revealed that when the Kenya Kwanza administration assumed office, 23 public universities were technically insolvent.
He said reforms introduced by the Government have reduced the number of financially distressed 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.
He added that universities have been directed to commercialise idle assets to generate additional revenue, while TVET institutions have been encouraged to establish partnerships with industry to diversify their income sources.
The ministry is also auditing government-supplied equipment to facilitate the redistribution of underutilised assets to institutions where they are most needed.
Ogamba also dismissed claims that capitation for senior secondary schools had been reduced from Sh22,244 to Sh14,000 per learner, insisting that Government policy on capitation remains unchanged.
He said the ministry’s priority is to ensure institutions receive the full allocation required to support learning and improve the quality of education.
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