The university education sub-sector is likely to get a reduction in budgetary allocation by Sh1.9 billion.
According to 2022/2023 supplementary budget estimates, four out of five departments in the Ministry of Education will receive budget cuts.
This is apart from the early learning and basic education with an increase of Sh17.6 billion and Teachers Service Commission with Sh6.4 billion.
"Rationalization of allocation to capital projects in various public universities," the report reads.
The ministry will have an enhanced budget of Sh19.6 billion up from Sh544bn allocated in 2022.
The increased budget will cater for Junior secondary learners' capitation and recruitment of teachers.
Schools will receive Sh15,000 capitation for every Grade 7 student.
"Provision of funds for recruitment of teaching resources in public primary and secondary schools," the report reads.
The reduction in budget comes even as varsities grapple with accumulated debts hitting more than Sh50 billion.
According to the Universities Fund, public universities have accumulated debts hitting Sh56.1 billion as of June 2022.
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 are Sh2 million loan deductions worth Sh1.3bn, pension schemes Sh18 billion and PAYE is owed Sh13 billion, while other loans have accumulated Sh10 billion.