The Treasury is planning to reduce funding to universities by 5.4% to Sh. 91. 2 billion meaning universities could be set to go through tough economic times.
This is because the proposed allocation for the financial year that is set to begin this June is Sh, 5.21 billion less than this year’s allocation of Sh. 96.41 billion. Out of these Sh., 87.84 billion and an additional budget of Sh. 8.57 billion.
In the 2019/2020 financial year, university education was allocated Sh. 116.94 billion. However, since that time, the allocation has been gradually reducing. The reduction has put a financial strain on universities that are also dealing with a reducing student population.
In Kenya, there are 102 universities and campuses with a deficit of Sh. 6.2 billion in the financial year that ended in June 2021. This was despite the institutions being allocated Sh. 70 billion by the Treasury.
In response to the reduction in funding, universities such as the University of Nairobi have responded by raising school fees to make up for the gap.
Perennial revenue gaps and obligations of paying debt have ramped up pressure on the treasury leading to the reduction in the allocation of funds to universities.
Enrollment of parallel program students in many institutions has reached an all-time low in recent years. As a result, many universities have stagnated in terms of capacity while others have been forced to close down their campuses due to infeasible financial circumstances.
Universities like Egerton University, Moi University, Jomo Kenyatta University of Agriculture and Technology and Laikipia Kisii University are among those that have been closed due to financial constraints.
Besides the decline in the number of students taking up parallel programmes in universities, many students who are eligible for self-sponsorship courses opt for Technical and Vocational Education and Training (TVET) institutions. This is further exacerbated by the tuition fees offered by the government which encourages students to take up TVET courses.