CASH CRUNCH

Dons bash Machogu as debate rages over varsities funding

Some education stakeholders think it’s the government’s duty to fund the institutions.

In Summary
  • Lecturers in public universities accused Machogu of making roadside declarations that involve very serious policy matters.

  • Universities Academic staff Union secretary general Constantine Wasonga on Monday warned against treating public universities as an afterthought.

Universities Academic Staff Union chairperson Grace Nyongesa (C) and other union officials and members during a press conference on November 7, 2022.
UNIVERSITY FUNDING: Universities Academic Staff Union chairperson Grace Nyongesa (C) and other union officials and members during a press conference on November 7, 2022.
Image: CHARLENE MALWA

Education Cabinet Secretary Ezekiel Machogu’s remarks on university funding have elicited a huge debate on funding of the institutions.

A tug of war is looming among education stakeholders who think it’s the government’s duty to fund universities, even as others say it's time for universities to become independent.

Lecturers in public universities accused Machogu of making roadside declarations that involve very serious policy matters.

Universities Academic staff Union secretary general Constantine Wasonga on Monday warned against treating public universities as an afterthought.

 “That statement has not made us sleep. We don’t know whether it’s a government policy or it was a roadside declaration. But I believe it was a roadside declaration because I know how policies are formulated,” Wasonga said.

He questioned why only public universities should be asked to generate their own income.

“Can Jogoo House be independent and generate its own income? That is my question to the CS. Or what did he mean?” Wasonga said, adding that the remarks by Machogu come at a time when universities are struggling with debts.

In October, Universities Funding Board CEO Geoffrey Monari said most universities are likely to collapse.

Even though Machogu insisted on generation of own revenue, Monari said the move is not self sustaining.

“Universities depend on government money even to run those businesses. But how often do they receive the funds, it’s not possible for example to run a hotel using university funds,” Monari said, even as he dismissed calls to bail out the institutions.

“You will bail them out this year and after two years again they will be back with similar problems,” he said.

Technical University of Kenya vice chancellor Aduol Francis backed the remarks made by Machogu, saying expenses met by university education should be a contribution made by three different stakeholders.

That is the government, university and the students.

“The rate of contributions of the government would be increasing as the cost of programme increases that of the student would be going down,” Aduol said.

This is because students’ contribution would remain at the proposed fixed figure of Sh24,000.

“The contribution of the university of course would increase proportionately to the cost of the programme since it is taken as a percentage of the programme cost,” he said.

Aduol welcomed the move, urging others VCs to sit with Machogu to be have a consultative discussion.

VCs had proposed that students pay a fixed Sh24, 000 school fees for every academic year.

“Government should focus itself on financing the student rather than funding the university as such,” the TUK VC said.

Another stakeholder from a financially struggling university who sought anonymity said the idea is good, but should be gradual.

“We should have stakeholder engagement so that universities are independent, it’s not something to be implemented tomorrow,” he said.

Outgoing University Education Principal Secretary Simon Nabukwesi previously warned that universities are likely to collapse.

Nabukwesi called on the government to increase funding in universities from the current 46 per cent to the required 80 per cent.

“We would like the government to bail out universities. Until then the capitation sent to universities should be increased,” he said.

While presenting budget estimates to the Education committee earlier this year, he said the state department generated Sh30 billion.

This was in terms of Appropriation in Aid, with the University of Nairobi having the highest printed estimates totalling to Sh5.3 billion.

According to data acquired from the funding agency, the accumulated debt includes remittances, part-time lecturers, Sacco and contractors, among others.

The universities owe contractors Sh1.4 billion, part-time lecturers Sh4.5 billion, suppliers Sh4.8 billion and Sacco contributions Sh4.1 billion.

"NSSF is owed Sh139 million, at NHIF there is Sh2 million, loan deductions worth Sh1.3 billion, pension schemes Sh18 billion and PAYE owed is Sh13 billion, while other loans have accumulated Sh10 billion," he said. 

Monari said that relying on government financing is dangerous since the funds are never enough because of the continued increase in the number of students enrolled in universities.

For instance, as 2022 KCSE students await to start their exam, 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 Sh32 billion, while the available funds is Sh12 billion," the University Fund CEO said.

Monari also said that the board is not able to fulfil the required finding percentage.

According to the differentiated unit cost (DUC) funding method, the government is expected to fund 80 per cent, while the remaining 20 per cent is to be generated internally by universities.

Monari, however, said that due to the financial situation in the country, the allocation started at 66 per cent and was later reduced to 48.11 per cent and is currently at 44 per cent.

"The current DUC requirement is Sh87 billion but the available budget is Sh47 billion hence the deficit is Sh39 billion," he said.

 

(edited by Amol Awuor)

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