Budget gives a ray of hope for universities

Universities are experiencing a deep cash crunch. But there is hope for them if the 2021/2022 financial estimates are anything to go by.

The “Parliamentary Budget and Appropriations Committee (BAC) Report” proposes an increase in capitation from Sh41 billion to Sh61 billion for public universities and Sh2.4 billion to Sh5.6 billion for the private ones.

Many of these institutions are unable to settle bills running into billions of shillings, accumulated over the years. This was caused by the drastic drop in enrolment of students, especially the self-sponsored ones, budget cuts and the sudden stoppage of learning last year due to the Covid-19 pandemic.

Many have not met their obligations — including remitting the workers’ statutory deductions, such as income tax and pension. This is despite the presidential directive in June 2019 that required government agencies to clear pending bills at once.

 Seemingly informed by this reality, BAC has advised the State Department for University Education to sign a memorandum of understanding with Kenya Revenue Authority on how the non-remitted dues will be paid. Accordingly, a report on this should be submitted to the National Assembly by October 1.

BAC regrets that the policy on capitation for state-sponsored students in private universities has not been well-managed. MPs felt that the Sh40,000 these students receive per academic year on average is too little in view of their expenditure, estimated at Sh200, 000 from the current Sh120,000.

Action against defaulters

Besides, the Higher Education Loans Board (Helb) should be better facilitated to execute its mandate, amid grievances that the amount allocated to the agency to cater for new applicants and continuing students is inadequate. Also, stern action should be taken against defaulters with the capacity to repay.

Furthermore, the BAC report notes that ongoing projects in the universities are at risk of stalling due to underfunding. Also underfunded are such critical institutions as the Commission for University Education, the National Research Fund and the University Funding Board (UFB).

Particularly, UFB is mandated to develop a transparent and fair criteria for allocation of funds to universities. It favours a differentiated unit cost funding model which considers the equipment, human resource and facilities required by different academic programmes as opposed to the number of students.

Vice-chancellors of public universities have proposed an increase in the fees payable by students and more government capitation. But while they should endeavour to benefit from donations or endowments, as well as income-generating projects, they should reciprocate by providing the desired services and living to their visions and missions.

To ensure sustainability, utmost integrity and accountability in management is paramount. Apparently, system inefficiency, including embezzlement of funds, is a big challenge.

Dr Nyatuka teaches at the Department of Educational Foundations, Kisii University. [email protected].