MPs Raise Alarm Over Rising Debts in Public Universities

Members of the National Assembly Committee on Education have expressed concern over growing debts in public universities, questioning why pending bills continue to rise despite government funding under the student-centered model.

The Committee, chaired by Julius Melly, met officials from the Ministry of Education led by Principal Secretary for Higher Education and Research, Dr. Beatrice Inyangala, alongside Geoffrey Monari, CEO of the Higher Education Loans Board (HELB), and Technical University of Kenya Vice-Chancellor Prof. Benedict Mutua.

Dr. Inyangala told MPs that the Ministry is facing a KSh100 billion funding gap for higher education institutions, even as the government rolls out the needs-based funding model introduced by President William Ruto.

“We are implementing a multi-pronged strategy that includes asset-based securitization and enhanced loan recoveries. Monthly recoveries have improved from Sh500 million to Sh650 million,” she said, noting that high unemployment continues to hinder full loan repayment.

The PS explained that the new funding model considers students’ financial backgrounds, programme costs, and institutional efficiency to ensure equity and sustainability.

“Each household is assessed individually. Students from vulnerable backgrounds pay as little as Sh5,800 a year, while those from higher-income families pay up to Sh150,000,” she said.

Despite increases in allocations, with HELB funding rising to Sh98.4 billion and the University Fund to Sh4.8 billion, MPs warned that many universities remain in financial distress.

Dr. Inyangala attributed the crisis to “a mismatch between projected and actual disbursements,” revealing that about 11 public universities are technically insolvent.

“Two institutions, Moi University and the Technical University of Kenya, are in critical financial condition,” she said.

Moi University Acting Vice-Chancellor Prof. Isaac Kiplagat confirmed the university received Sh1.5 billion last year, which was used to pay staff salaries and arrears. However, the institution still faces a pension liability of about Sh4.5 billion.

“We have received approvals to liquidate some properties in partnership with the Pension Fund to clear arrears,” he said.

Prof. Mutua reported that TUK has been unable to pay gross salaries since 2013, paying only net salaries. “Our monthly wage bill stands at Sh102 million, but we receive less than Sh60 million from the Treasury. The staff-to-student ratio is nearly 1:1, which is unsustainable,” he told MPs.

HELB CEO Monari urged the Committee to support prompt disbursement of loan funds, stressing that timely payments would help stabilize universities since “money follows the student.”

Chairperson Melly assured officials that the Committee would make recommendations to ensure adequate and predictable funding.

“The Government must align university financing with the new model’s intent to safeguard the future of higher education,” he said.