Six private varsities claim half of Sh60bn state debt

Six universities are laying claim to more than half of the Sh60 billion the state owes 32 private varsities across the country.

Documents tabled in Parliament shows Mount Kenya, Kabarak, KCA, Kenya Methodist, University of Eastern Africa, Baraton and Zetech universities claim Sh36.4 billion.

This leaves 26 private universities to share the remaining Sh23.6 billion.

The Sh60 billion is the arrears the government incurred after placing state-sponsored students in the private facilities under the now discontinued placement programme.

Under the arrangement, the state undertook to pay tuition fees for the placed students.

However, despite universities admitting and training the students, delayed disbursements and unpaid capitation have seen the debt pile up over the years.

The model adopted in 2016-17 was discontinued in the first year of President William Ruto’s administration.

“Across the 32 private universities included in the analysis, the cumulative 80 per cent DUC (Differentiated Cost Unit) requirement amounts to Sh77.240 billion," Higher Education PS Beatrice Inyangala told MPs on Wednesday.

"Against this requirement, Sh18.9 billion had been disbursed, resulting in an overall validated funding deficit of Sh60.2 billion.” 

“This substantial shortfall reflects the cumulative effect of persistent under-allocation relative to approved DUC entitlements over financial years, confirming the structural nature of underfunding within the DUC framework.”

According to ministry’s documents, leading the pack in the Sh60 billion is Mount Kenya University being owed Sh11.6 billion followed by KCA University’s Sh6.6 billion.

Other institutions in the top six include Kabarak University (Sh6.4 billion), Kenya Methodist University (Sh5 billion), University of Eastern Africa, Baraton (Sh3.7 billion) and Zetech University (Sh3.7 billion).

International Leadership University and Amref International University are owed the least at Sh23 million and Sh60.7 million, respectively.

The revelations came during a session between PS Inyangala and National Assembly’s Education committee to deliberate on supplementary budget estimates for 2025-26 financial year.

From the tabled documents, St Paul’s University is owed Sh2.1 billion, Presbyterian University of East Africa (Sh2.1 billion), Pioneer International University (Sh1.1 billion), Uzima University College (Sh1.2 billion) and Lukenya University (Sh1.3 billion).

Other major beneficiaries of the programme  are Kiriri Womens University (Sh343 million), Management University of Africa (Sh388 million), Marist International University College (Sh251 million), Pan Africa Christian University (Sh220 million), Riara University (Sh344 million) and Raf International University (Sh89 million).

Also owed are Scott Christian University (Sh484 million), Tangaza University College (Sh401 million), The East African University (Sh671 million) and Umma University (Sh792 million).

The funding of students to private facilities started with 6,208 students during the financial year 2016-17 and increased steadily to a high of 77,761 students in 2022-23.