Battle looms over government’s millions in tuition fee debt

Kenyan private universities are locked in a high-stakes confrontation with the government, demanding payment of US$362.3 million in outstanding tuition fees.

The crisis traces its roots to a well-intentioned government initiative launched in 2016. At a time when reforms in the Kenya Certificate of Secondary Education dramatically reduced the number of university qualifiers, the government introduced a bold programme: sponsoring students at private universities.

This move was designed to provide educational opportunities for students who might otherwise have been left behind, creating a bridge between the limited public university capacity and students’ academic aspirations.

However, what began as a promising solution has turned into a financial quagmire. The government committed to paying 80% of the tuition fees for students placed at private universities, but consistently failed to meet this obligation. Over seven years, 31 private universities hosted 320,892 government-sponsored students, expecting a total of US$480 million in tuition.

According to a Commission for University Education report, they received only US$117 million, leaving a disputed balance of US$362.3 million that now forms the centre of an intense financial confrontation.

Selective funding approach ‘discriminating’

The Kenya Association of Private Universities (KAPU) has taken a definitive stand. In a demand letter addressed to key government officials, including the cabinet secretaries for education and the Kenya National Treasury, they have given the government a 30-day ultimatum to either pay the amount or present a comprehensive payment plan. The letter does not just demand money, it challenges the very principles of educational equity and constitutional fairness.

Private universities argue that the government’s selective funding approach discriminates against their students, violating article 27 of the Constitution of Kenya, which guarantees equal treatment. Each unpaid bill represents a student whose educational journey has potentially been compromised, an infrastructure investment left unsupported, and an institutional future hanging in the balance.

The financial strain has manifested in multiple ways. Mount Kenya University leads the list of affected institutions, with a massive US$78.5 million owed to it, followed by Kabarak University (US$44.6 million), and KCA University (US$35.4 million). Other institutions with significant claims include Kenya Methodist University, and the Catholic University of Eastern Africa.

Aspirations, constraints collide

The government’s financial challenges are not isolated to private universities. Public universities have simultaneously been wrestling with their own funding issues, including a recent US$74.6 million pay deal with lecturers to resolve a prolonged strike. These multiple financial pressures paint a picture of a system stretched to its limits, where educational aspirations constantly collide with fiscal constraints.

In 2024, the landscape transformed dramatically. The government dramatically reduced its commitment to private university funding, allocating merely 10% of the required tuition fees for the 2024-25 fiscal year. This reduction effectively ended the government-sponsored student programme at private institutions, leaving thousands of students in uncertain educational territory.

KAPU’s leadership, including figures like the Treasurer, Professor Washington Okeyo, have been vocal in highlighting the systemic challenges. They point out that the allocated funds – approximately US$13.1 million – represent only 10.12% of students’ tuition fees, a stark departure from the previous commitment of 80%. Many programmes, especially those requiring sophisticated infrastructure and specialised training, cannot be sustained at such reduced funding levels, according to the Universities Funding Board.

Students left in the lurch

The evolving policy landscape reveals deeper systemic shifts. President William Ruto’s administration introduced a new higher education funding model explicitly designed to benefit students from destitute backgrounds. While laudable in intention, the model effectively excluded private universities from government sponsorship, fundamentally altering the educational ecosystem that had developed over the previous decade.

This policy shift means that students at private universities are now largely responsible for their own education. While they can access loans through the Higher Education Loans Board, they are ineligible for scholarships under the new funding model. The implications are profound, potentially limiting access to education for students from poor backgrounds who previously might have found opportunities at private institutions.

To emphasise the gravity of the situation, Dr Vincent Gaitho, the secretary general of the National Association of Private Universities in Kenya, criticised the new model at a news conference in September 2024, saying: “People should be given an opportunity to choose where they want to seek their higher education. The president said that, under the new model, every child will have equal opportunities.”

Binary approach challenged

The numbers tell a stark story of decline. From admitting nearly 88,000 state-sponsored students between 2016 and 2021, private universities saw their government-sponsored student numbers plummet to just 68,966. The enrolment landscape changed dramatically, with approximately 9,000 students choosing private universities in the most recent academic year – a significant drop from previous years, according to data from the Kenya Universities and Colleges Central Placement Service (KUCCPS).

Educationists like Dr Mark Matunga suggest that the solution lies in a more student-centred approach. “Our money should fund an individual, not a university,” he argues, advocating for a funding model that follows the student rather than being institutionally constrained. This perspective challenges the current binary approach of public versus private education, Matunga told University World News.

The government’s perspective is equally complex. The aim, according to official statements, is to support public institutions whose pending bills have ballooned to US$463.1 million. These bills encompass unremitted statutory deductions, savings and credit cooperative dues, pensions, bank loans, and unpaid contractors. The financial strain on public universities, exacerbated by falling student numbers and rising operational costs, presents a challenging backdrop to the entire discussion.

Before 2016, private universities never received government-sponsored students. The original programme emerged from a practical necessity – public universities lacked sufficient capacity to absorb all qualifying students. The Kenya Universities and Colleges Central Placement Service would negotiate with private institutions, which would declare available spots, and the state would subsequently sponsor students at these colleges.