•Monari said the institutions should shun fully depending on capitation from the government.
•"Currently our universities are facing a profound financial crisis. The aftermath of Covid 19 still lingers," Monari said.
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Cash-strapped public universities have accumulated debts hitting Sh56.1bn as of June 2022.
According to the Universities Fund, most public universities are on the verge of collapsing.
The Universities Fund CEO Geoffrey Monari said public universities should find alternative income-generating avenues.
Monari was speaking during a workshop during the weekend.
He said the institutions should shun fully depending on capitation from the government.
"Currently our universities are facing a profound financial crisis. The aftermath of Covid 19 still lingers," Monari said.
According to data acquired from the UF, the accumulated debt includes remittances, part-time lecturers, Sacco, and contractors among others.
The Universities owe contractors Sh1.4bn, part-time lecturers Sh4.5bn, suppliers Sh4.8bn, and Sacco contributions Sh4.1bn.
"NSSF is owed Sh139m, at NHIF there is Sh2million, loan deductions worth Sh1.3bn, pension schemes Sh18bn and PAYE is owed is Sh13bn, while other loans have accumulated Sh10bn," he said.
Monari clarified that relying on government financing is dangerous since the funds are never enough.
This, he attributes to the continued increase in the number of students enrolled in universities.
For instance, as 2022 KCSE students await to start their exams, the board expects an increase of 52,195 who are to be funded by the government.
"The funding requirement for the 2022 cohort of 145,145 students is Sh32bn while the available funds are Sh12bn," Monari said.
The UF boss further added that the board is not able to fulfil the required finding percentage.
According to the differentiated unit cost funding method, the government is expected to fund 80 per cent while the remaining 20 per cent is to be generated internally by universities.
But due to the financial situation in the country, Monari said the allocation started at 66 per cent and was later reduced to 48.11% and is currently at 44 per cent.
"The current DUC requirement is Sh87bn but the available budget is Sh47bn hence the deficit is Sh39bn," he added.
To solve the funding crisis in universities, Monari called for the adoption of three measures.
The first measure which is increasing university fees, Monari said is not advisable due to tough economic times.
"Admit students as per the available funds giving programs of national priority emphasis to enhance employability," he said.
He also called for financing of students from vulnerable backgrounds who might not be able to pay fees.
This comes even after Vice Chancellor suggested the same, that university students from rich families should not be funded.
By the time 2022 KCSE students are enrolled in universities, it is expected that the government will have come up with a sustainable method of finding.
Education stakeholders call for funding of bright but needy students, only.