The future of university students in Kenya hangs in the balance as Education Cabinet Secretary Julius Ogamba revealed that 23 public universities are insolvent due to severe financial challenges.
While appearing before the National Assembly Committee on Education on Wednesday, March 19, Ogamba acknowledged that the funding crisis in public universities has worsened over the years.
He warned that without urgent intervention, institutions may struggle to remain operational.
Underfunding to blame for Universities’ financial woes
According to Ogamba, chronic underfunding, especially for government-sponsored students is the primary cause of the insolvency crisis.
- Universities are struggling to meet financial obligations, including debts, operational costs, and staff salaries.
- Due to a lack of funds, salary delays have led to staff strikes and student protests.
- Frequent disruptions in learning are affecting students’ academic progress.
The financial strain has reached a critical point, making it difficult for institutions to function effectively.
Parliament raises concerns over mismanagement
During the session, the committee expressed concerns over mismanagement and the accumulation of huge debts in public universities. Lawmakers pointed to the University of Nairobi (UoN) and the Technical University of Kenya (TUK) as key examples of institutions struggling with financial instability.
- UoN has pending bills totaling Ksh13.58 billion, including Ksh4 billion in historical arrears.
- TUK is grappling with a Ksh12.99 billion debt.
Additionally, governance failures and leadership wrangles have worsened the situation, raising fears that poor management is contributing to the crisis.
Government’s plan to address the crisis
In response, Ogamba assured the committee that the Ministry of Education is implementing measures to stabilize university finances.
As part of the 2025-2026 Transformation Strategy, the Ministry aims to:
- Strengthen university governance to ensure better financial management.
- Improve financial sustainability by introducing new funding models.
- Enhance resource mobilization through partnerships and alternative revenue streams.
If implemented effectively, these reforms could help universities regain financial stability.
Universities taking drastic measures
Due to the worsening financial crisis, some institutions have resorted to drastic cost-cutting measures, including mass layoffs.
- TUK recently announced plans to lay off 559 employees to reduce operational costs.
- Moi University reportedly dismissed over 300 staff amid an acute cash crunch.
As public universities teeter on the edge of collapse, stakeholders are calling for urgent interventions to protect the future of higher education in Kenya.
