The funding headache squeezing universities

As the December exams loom, universities across the country are on the brink of financial collapse, leaving thousands of students in a state of uncertainty and despair.

Although the government has always directed institutions to allow students in, for the last four months has been at a breaking line.

With the government’s new funding model for higher education suspended by a court order, many institutions are struggling to stay afloat, and students fear they may be excluded from their end-of-semester exams due to unpaid fees.

University Fund Board CEO Geoffrey Monari expressed the gravity of the situation:

“We are complying with the court order, and as long as it stands, we cannot disburse the funds. This leaves us with no resources to support the universities or the students,” stated Monari.

The funding freeze, which affects over 234,000 students in first and second year admitted in 2023 and 2024, follows a September court ruling that declared the new funding model illegal.

Under this model, students were to receive scholarships and loans based on a banding system reflecting their financial capacity.

However, with the suspension of this system, funds have dried up, leaving institutions struggling to pay staff salaries and cover operational costs.

I don’t know how we are going to survive,” said Daniel Mugendi, chairman of the Vice Chancellor’s Committee.

“We are nearing a standstill. Without the funding, we won’t be able to pay our staff or provide essential services to students. It’s a crisis.”

This financial strain was also compounded by a three weeks lecturers’ strike, as faculty demanded the government honor a 2012-2025 Collective Bargaining Agreement.

The strike has delayed the completion of the semester, adding troubles to an already volatile situation.

Students, particularly those from vulnerable backgrounds, are bearing the brunt of the crisis.

With the suspension of upkeep loans, many are struggling to meet their day-to-day needs.

“I’m worried I don’t have money to settle my rent arrears as well as upkeep which has been a big struggle,” said Jane Mwangi, a third-year student at Moi University.

Vice chancellors are now facing the hard task of deciding whether to allow students to sit exams before they clear fees.

Some universities had already issued ultimatums, demanding students pay outstanding fees before being granted access to exams.

However, President William Ruto last week directed universities to allow students, especially those benefiting from the new funding model, to sit for their end-of-year exams despite outstanding fee balances.

His appeal, made during the Scott Christian University graduation ceremony in Machakos on Friday December 6, came amidst growing concerns about the delays in the full disbursement of funds to universities under the new student-centered higher education financing system.

Ruto urged universities to show patience and restraint as they await the completion of the funding process, acknowledging that the transition to the new model has presented challenges.

“I appeal to universities to allow students to sit for their end-of-semester examinations while awaiting the resumption of full disbursements,” he said, stressing that the government is working to address the issue.

The president’s statement highlights a deeper issue within Kenya’s higher education sector.

While the new funding model aims to ease financial burdens for students and institutions, the delay in the full disbursement of funds is causing significant uncertainty for both universities and students.

Many students may face unnecessary stress over whether they will be allowed to complete their exams due to their outstanding fees.