Universities are still enrolling a high number of self-sponsored students despite a steep fall in secondary school graduates scoring grades that guarantee direct entry to the institutions.
A report by the Commission for University Education shows that though all students who scored grade C+ and above in the Kenya Certificate of Secondary Education examination joined university through government sponsorship, module II programmes registered increased enrolment.
The report, covering 2014 and 2016 and which will be released soon, indicates that students paid Sh147 billion as fees during the period.
Public universities received Sh99.3 billion while private ones got Sh47.8 billion.
“Fees increased by 10 per cent from Sh46.3 billion in 2014 to Sh51 billion in 2016. The fee in public and private universities increased by 11.2 and 7.7 per cent respectively,” the report adds.
BUDGET
It says universities are spending 58 per cent of their revenue on salaries as they grapple with a budget deficit of Sh6.2 billion.
It says universities are spending 58 per cent of their revenue on salaries as they grapple with a budget deficit of Sh6.2 billion.
The institutions are also dedicating 30.4 per cent of their budgets on other expenditure, with buildings taking 8.3 per cent and maintenance four per cent.
The 31 public universities are using 59 per cent of their budgets on salaries while the figure for private universities is 53.
The report indicates that for 2014-2016 period, public and private universities used Sh168 billion to pay salaries, Sh24 billion on buildings, Sh9 billion on maintenance and Sh88 billion on other expenses.
National Treasury Cabinet Secretary Henry Rotich told the National Assembly Education Committee in mid-March that universities are in a financial crisis and proposed staff retrenchment.
STRIKE
Public universities have about 27,000 workers, with 9,000 of them being lecturers.
Public universities have about 27,000 workers, with 9,000 of them being lecturers.
The dons are on strike, demanding salary increase expected to cost the taxpayer Sh38 billion for four years.
Mr Rotich attributed the crisis in funding to a new policy in which funding is based on courses pursued by a student.
According to the report seen by the Nation, the income for public universities was Sh226 billion while their expenditure totalled Sh230 billion, translating to a deficit of Sh3.6 billion.
Private universities had an income of Sh57.7 billion and an expenditure of Sh60.3 billion, translating to a Sh2.28 billion deficit.
The report says universities are spending more than what they make.
“The university industry is not able to sustain itself. If the trend is not remedied universities may not achieve their objectives,” the study says.
FUNDING
It adds that inadequate funding will eventually lead to stagnation or lack of growth as many institutions may not expand their resources like infrastructure and staffing.
It adds that inadequate funding will eventually lead to stagnation or lack of growth as many institutions may not expand their resources like infrastructure and staffing.
It could also lead to poor services since the limited resources will not support the growing numbers.
The report points out that lack of enough funds could lead to universities focusing on programmes that attract students in order to increase cash flow and not schemes that are key to the country’s development agenda.
It also says the institutions may fail to fund research that informs policy, limiting creativity and innovation.
DEDUCTIONS
Lack of funding may lead to high staff turnover since universities will not attract and retain qualified academic staff, the report says.
Lack of funding may lead to high staff turnover since universities will not attract and retain qualified academic staff, the report says.
According to the study, decreased cost in private universities is due to their reliance on sponsors, donors and partners which may not be consistent, while public institutions are funded by the government on continuous basis.
“However, the higher decreased cost in public universities is a result of reduced funding in development expenditure.”
Vice-chancellors committee chairman Francis Aduol recently told the National Assembly Education Committee that 16 out of 31 universities are in a financial crisis and cannot pay their workers.
He said universities are not able to pay statutory deductions to government agencies.