VCs right on fees appeal

The request by the vice-chancellors of the public universities to increase undergraduate degree course fees from Sh16,000 to Sh48,000 per year may be unpopular but it is quite realistic.

The current fee structure has been in place for more than 30 years during which there has been a huge escalation of the cost of providing that education. It’s hardly surprising, therefore, that the government supports the proposal to triple the fees.

The institutions of higher learning are in a deep financial crisis, necessitating a review of the fees. The universities owe a staggering Sh37.3 billion in statutory deductions.

They are indebted to the Kenya Revenue Authority, pension schemes, insurance firms, saccos, the NHIF and NSSF.

 From an average cost per student of Sh120,000 a year, this has risen to Sh254,644. However, the government pays only Sh70,000 and the students, Sh16,000.

The VCs want the students to pay Sh48,000. To ensure they cope, the VCs want the Higher Education Loans Board (Helb) to increase loans to Sh68,000.

There is clearly a need to increase the Helb’s capitation. However, the government is also struggling to meet its huge financial burden. The loan scheme has enabled many students to get an education and lift themselves out of poverty.

Helb has also been struggling with a high default rate, but it is not because the beneficiaries refuse to pay up. Many go for several years without jobs after graduation. However, it must strive to intensify the collections.

The agency should also explore other sources of funding instead of relying solely on the government. Universities should encourage alumni, wealthy individuals and corporates to donate to their special endowment schemes.

This private funding works quite well in development countries. Universities must also seek to monetise programmes or participate in sectors of their expertise for revenue creation. Universities play a key role in training the manpower the country badly needs. They should be supported.