Kenyan universities are facing a worsening financial crisis that could lead some institutions to shut down, after Members of Parliament (MPs) were informed that unpaid bills across the sector have grown to nearly Ksh100 billion.
The crisis surfaced during a grilling of the State Department for Higher Education by Parliament’s Education Committee, where Principal Secretary (PS) Beatrice Inyangala admitted that mounting debts are choking public universities and threatening their operations.
The MPs warned that without urgent intervention, learning could be disrupted and some institutions may not survive.
Egerton University Tops Multibillion Debt Crisis
Figures presented to the committee show that public universities alone had accumulated nearly Ksh100 billion in pending bills by the end of last year.
Egerton University carries the largest debt burden, with unpaid bills totaling Ksh25.5 billion.
The University of Nairobi (UoN) owes Ksh17 billion, followed by Kenyatta University with Ksh12.8 billion.
Moi University is fourth in the debt list, with Ksh10.4 billion in pending bills.
PS Inyangala warned that the situation is worsening every year as student numbers increase while government funding fails to keep pace.
The MPs said these figures point to a system under severe strain, with universities struggling to pay suppliers and staff, and to meet statutory obligations.
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To deepen the crisis, pending bills at private universities have also doubled over the same period.
Government Seeks Emergency Funding
Appearing before the committee, officials from the Ministry of Education said the government is now seeking Parliament’s approval for a Ksh14.3 billion supplementary budget to keep universities running until the next financial year.
The ministry said the additional funding is meant to support operations and prevent a collapse in essential services.
According to PS Inyangala, a significant part of the funding gap is linked to the Higher Education Loans Board (HELB).
The ministry disclosed that HELB is facing a total budget shortfall of Ksh43.4 billion for the current and upcoming financial years.
This includes Ksh10.6 billion in pending bills from the previous year related to unremitted scholarships and loans, and a further Ksh32.8 billion required this year for unappropriated scholarships and loans.
The committee also heard that lecturers’ collective bargaining agreements remain unfunded, with arrears estimated at nearly Ksh4 billion.
The Education Ministry officials added that without additional allocations, universities risk renewed disputes with teaching staff, further disrupting learning calendars already affected by strikes and funding delays.
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MPs expressed anger that, despite the government paying about 57 percent of university costs, institutions appear to be making little effort to reduce their historical debts.
Education Committee chair Julius Melly accused universities of allowing pending bills to grow unchecked, warning that the pattern is unsustainable.
MPs Flag Irregular Allocations to Universities
During the grilling, concerns were also raised over stalled development projects across several universities, including the UoN, Moi, Egerton, and Laikipia universities.
Luanda MP Dick Maungu questioned why funds continue to be directed toward new universities and projects while existing facilities remain incomplete and students lack basic support.
He further questioned the handling of funds by the ministry and the Treasury, citing cases where allocations appeared irregular.
One such case involved a Ksh600 million allocation to a single university, with officials unable to clearly explain whether the request originated from the ministry or the Treasury.
PS Inyangala warned that the failure to fund scholarships and student loans fully is worsening the crisis, forcing universities to borrow, delay payments to suppliers, and incur penalties that further inflate their debts.
She cautioned that if the trend continues, universities could be pushed to the brink, with closures no longer a remote possibility.
