The question of funding university education in Kenya has remained a thorn in the flesh of many regimes since independence, with a pile of challenges rising each year due to increased enrolment, especially in public-owned institutions.
So intricate has been the issue of funding universities that, despite the introduction of the Differentiated Unit Cost in the last decade, the universities still sank to pending bills of Sh60.5 billion by the time the Kenya Kwanza government was coming to power in 2022.
And, although the introduction of the Student-Centred Funding Model two years ago brought a sigh of relief in the sector that promised to ease the financial pressure of universities, a court ruling last year has thrown the whole programme in limbo.
Faced with this complex situation, vice chancellors of public and private universities and players in the sector are converging in Naivasha to explore the best way to streamline the challenges facing funding of higher education in Kenya.
The Universities Fund’s Second Biennial University Conference will evaluate the future of university funding while encouraging innovative funding models, best practices in financial management, digital transformation in university operations, transformational leadership, governance and performance management.
The two-day event, which takes February 26-28, draws university leaders, government agencies, development partners, policymakers, the private sector, entrepreneurs, and international agencies under the theme ‘Navigating the New Era of Education Financing in Kenya’.
The meeting is a continuation of the debut event that took place in 2023 in Mombasa, where stakeholders reached seven key legal, policy and administrative issues seeking urgent action in universities.
Participants will evaluate the length that universities have gone in implementing resolutions agreed at the first biennial conference, including implementing strategies to clear universities pending bills, devising and diversifying the generation of alternative revenue streams to complement Government funding, and enhancing the independence and governance of public universities.
This year’s event comes at a momentous period when the government is implementing the 100 per cent transition of students to higher learning institutions as part of the measures to ensure equitable access to quality and affordable education.
The need to scrutinise the future of higher education is necessary to give hope to the 246,391 secondary school leavers who qualified for university enrolment after sitting the 2024 KCSE examination.
However, there is a challenge following the quashing of the Variable Scholarships and Loans Funding (VSLF) model, also known as the New Funding Model (NFM), by the high court in December last year.
The model was established to promote equity and fairness in student funding by cancelling automatic State funding of students, instead institutionalising the use of a means-testing instrument (MTI) that measures a student’s financial need based on moderating factors such as family economic background and affirmative action.
This scenario calls for more innovative and sustainable strategies to drive the provision of quality education, increased research and innovation and better governance, which will enable our universities to churn out a techno-savvy graduate ready for the job market.
Currently, universities are reeling from a collective debt of Sh72 billion in unpaid salaries, unremitted statutory deductions, pension arrears, and pending bills.
Since financial management in institutions is a pressing concern, the conference will discuss ways of designing budgets, prudent allocation of resources, and the development of cost management frameworks suited to their individual needs.
Also under discussion is the issue of capitalising on technology to help universities strengthen their research programmes, access real-time data on student performance, and automate administrative tasks for better time management.
The issues target to strengthen financial sustainability and stewardship of universities, develop talent and diverse workforce, bolster institutional capacity, enhance customer focus, and promote environmental, social and governance to promote environmental, social, and governance practices.
The Kenyan higher education system is full of contrasts. On the one hand, five Kenyan universities are among the top 100 African institutions.
On the other hand, Kenyan public universities are in a dire financial situation. Quantitative expansion seems to have occurred at the expense of quality.
During the conference, stakeholders will also
dig into and scrutinise opportunities provided to make evidence-based
decisions, promote transparency in financial management and roll out the
competency-based curriculum in 2028.
Finally, the conference seeks to open the path for discussion on transformational leadership, governance and performance management in bolstering transparency and accountability in the utilisation of university resources.
Mr
Monari is the Chief Executive Officer of the Universities Fund
