CS Mbadi Summoned Over Cash Crisis

National Treasury Cabinet Secretary (CS) John Mbadi and his Education counterpart Julius Ogamba are set to appear before Members of Parliament (MPs) to address the looming dangers of the delayed and late disbursement of the already mutilated capitation fund in the Education sector.

The Public Investments Committee on Governance and Education chaired by Jack Wanami Wamboka asked the two CSs to appear before the Committee after a meeting with University Vice chancellors and Principals on April 2, 2025.

The Committee noted with concern that the government has recently been under castigation over delayed release of capitation funds to public universities and technical training institutions.

Members observed that the government is currently facing a funding shortfall, with universities and TVET institutions facing a combined shortfall of Ksh58.8 billion in the financial year ending June 2025.

According to the MPs, this has impacted scholarships, loans, and capitations for students.

University Vice chancellors and Principals said the delayed disbursement of funds is affecting the availability of learning materials, payment of non-teaching staff, and the provision of meals for students and co-curricular activities in these schools.

Complaints from VCs & Principals

Capitation also caters for development expenses including construction and renovation of school infrastructure. This has seen many institutions accumulating debt.

“Debts keep on accumulating, year in, year out, because we are not getting timely and enough resources,” Loice Kutoh, principal of the Rift Valley Technical and Training Institute, said.

Maseno University VC Prof. Julius Nyakundi added to the issue stating that, “The government owes the schools in millions if not billions, this underfunding and underperformance has affected most of the planned activities and impacted negatively on service delivery.”

Kisumu National Polytechnic Chief Principal Catherine Kelonye said the government is supposed to give to learners 80% of the total cost for University students and 30,000 per student per year for TVETS which school heads saying that has not been forthcoming for very many years.”

However, she explained that the capitation has been disbursed inconsistently over the years, leading to financial challenges for the institutions.

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School Administrations to Consider Alternative Sources of Income

Kilome MP Thaddeus Nzambia said that the government should be truthful in its budgeting policy and operate within its means.

“Let the public know that the government is unable to fully fund education in our institution of Higher learning, it is a dire situation,” said Nzambia.

Additionally, Kiminini MP said onstitutions which solely rely on capitation are now at a standstill.

He asked VCs and Principal to come up with alternative income generating activities that will help them supplement what government provides.

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