Gov't plans University bailout amid leadership clashes

The government has embarked on extensive reforms aimed at bailing out universities on the brink of collapse, those in financial turmoil, and those embroiled in supremacy wrangles.  

Education Cabinet Secretary Migos Ogamba has revealed that his ministry is conducting an overhaul of existing governing councils and appointment of new ones, ensuring timely disbursement of capitation funds and the enforcement of the gender and ethnic balance in universities as part of curing all that ails institutions of higher learning.

The CS who was appearing before the National Assembly’s Public Investment Committee (PIC) Governance and Education committee, said that the reforms will run for a period of three years and are aimed at ensuring Universities are self-sustaining.

Noting that the current deplorable state of affairs in 23 out of the 42 Universities was caused by political interference and lack of qualified vice chancellors at the helm, he disclosed that Kenyatta University, Nairobi University, Moi University and Technical University of Kenya had been targeted for the reforms.

 “As the government, we have made a cautious decision that none of our universities will go down. We are seized of all the challenges and have come up with a strategy for the next three years that we will implement to ensure that they are back to their lost glory as well as make sure that they stay afloat,” said Ogamba.

The Bumula MP-Jack Wamboka-led committee also heard that measures already been put in place to ensure that employment in the universities adhered to the requirements of the law, by ensuring that the process is competitive and meets the ethnic composition.

Ogamba explained that governing councils in a majority of the universities were fully constituted with only six having vacancies of between two and three members. And while acknowledging the delays in release of capitation, he blamed the same on a delay in a release of exchequer by the National Treasury.

 “Most of our university’s councils are fully constituted. Only six public universities have vacancies for between two and three members. The others are fully constituted or lack just one member. The vacancies have not been filled yet because of the recruitment process that we are undertaking to secure the right skills-mix, gender, and ethnic balance. We will fill these vacancies once the ongoing recruitment process is complete,” he stated.

On the wrangles taking Centre stage at Kenyatta University, the CS pleaded with the House team to give him three weeks to have addressed the mess. This was after the MPs called for the disbandment of the current governing Council and the reinstatement of professor Paul Wainaina as the University Vice chancellor.

Committee chair Wamboka sought to know why it was difficult for KU to allow Wainaina serve his term which set to end in January next year. Notably, governing council argued that Wainaiana was supposed to retire in July this year on the basis of his age and had sent him on sabbatical leave.

“We know that the council is the one politicizing this matter, and as a house, we have the power to even disband it,” said Wamboka.

Central Imenti MP Moses Kirima was convinced that professor Wainanina was being fought due to his hard stance on corruption at the institution.

“Mr minister, why do you want this important old university that has trained many teachers to go down. Please do something about it.”

Warning that the current events at KU could see the institution down like Moi university, Bomachoge Chache MP Alfah Miruka and Kiminini MP Kakai Bisau urged CS Ogamba to take charge of the matter and allow for the transition to take place- by allowing Wainaina to complete his term before appointing others are appointed to replace him.

The CS was however, adamant that settling the ongoing wrangles would help address the Sh12.38 billion pending bills headache.

At Moi University, which has pending bills amounting to Sh9.2 billion, the CS said the government has allocated the institution Sh500 million to address the financial requirements.  The remaining Sh8.6 billion pending bills, he said, would be in a phased manner that will see Sh2.6 billion settled in the 2024/2025 financial year.

The Sh2.6 billion comprises Sh0.5 billion in cash and Sh2.1 billion through a transfer of properties in Kitale, Nairobi, and Mombasa to facilitate payments to the pension scheme.

In the current 2025/2026-year, government will provide Sh1.25 billion to pay the 2017-2021 Collective Bargaining Agreement arrears, and a further Sh3 billion in the 2026/2027 financial for payment of unremitted loans and outstanding pensions. In the subsequent 2027/2028 financial year they will provide the final instalment.

 “These projections were developed based on a sustainability plan that has two pillars: an increase in student enrolment and a reduction in payroll costs to be implemented starting from the 2025/2026 academic year,” stated the CS.

As for TUK which has pending bills amounting to Sh12 .9 billion, the government has provided Sh145 million for the period January through to June 2025.

To settle the arrears, the CS revealed that Sh1.2 billion will be paid in the 2025/2026 financial year, Sh1 billion in the 2026/2027 financial year, Sh2 billion in the 2027/2028 financial year, S 2.5 billion in the 2028/2029 financial year, Sh4 billion in the 2029/2030 and 2030/2031 financial year, Sh2 billion in the 2031/2032 financial year.

“TUK will work to provide funds over the financial years 2025/2026, 2028/2029, and 2029/2030 to settle the outstanding liabilities of the wound-up TUK retirement benefit scheme.”

Ogamba was also categorical that his ministry was keen on addressing the financial constraints at the University of Nairobi and efforts to clear a Sh12.22 billion debt were in top gear.