Universities choke under Sh85 billion debt as 11 stare at closure

Stranded Students of University of Eldoret in UasinGishu County as they vacate the school compound after the institution closed indefinitely following the night strike. [File, Stranded] Public universities are choking under a mountain of unpaid bills, pending bills worth Sh85.28 billion. The debts have not been provided for in the upcoming budget ceilings, meaning there is no clear plan to settle them soon. Higher education Principal Secretary Beatrice Inyangla told MPs that 11 public universities are insolvent, meaning their debts outweigh their assets. The University of Nairobi has the highest debt of Sh15.489 billion, marking a severe financial strain on the country's oldest institution. The institution owes Sh7. 22billion to the Kenya Revenue Authority in unremitted PAYE and a further Sh5.55 billion in pension arrears. The institution also carries Sh1.412 billion in other statutory deductions alongside Sh1.30 billion owed to various suppliers and service providers. Kenyatta University follows with the second-highest debt of Sh11.8 billion. The breakdown reveals that the university owes Sh4.51 billion to the taxman and Sh4.2 billion to staff pension schemes. Furthermore, the institution struggles with Sh1.2billion in unremitted loan and Sacco deductions, as well as Sh1.9 billion in outstanding payments to contractors and suppliers. Moi University sits in the third position with a total debt of Sh8.61billion. Its financial books are heavily weighed down by Sh4.10 billion in unremitted taxes to KRA and Sh3.82 billion in combined pension and SACCO arrears. General suppliers and other creditors account for the remaining Sh687.00 million of its total pending bills. Egerton University ranks fourth with total liabilities amounting to Sh6.4 billion. Unlike its peers, its largest debt component is Sh2.81 billion in deferred staff salaries, followed by Sh1.95 billion owed to KRA and Sh1.12 billion in pension arrears. The university also owes trade suppliers Sh520.00 million, At Jomo Kenyatta University of Agriculture and Technology (JKUAT) the debt stands at Sh5.37bllion. This includes Sh2.51 billion in tax arrears, Sh1.82 billion in unpaid pensions, and Sh1.04 billion due to suppliers and contractors. Meanwhile, the Technical University of Kenya (TUK) faces a Sh4.15billion deficit. The debt is owed as follows: Sh2.1 billion in PAYE arrears and Sh1.35billion in pension obligations. Other notable institutions include the Technical University of Mombasa (TUM), which owes Sh2.41 billion (with Sh1.12 billion for KRA), and Multimedia University with a total of Sh1.51 billion. Maseno University and Kisii University conclude the list with debts of Sh1.09 billion and Sh942.50 million, respectively. The document tabled in the National Assembly Committee on Education shows that the debt has been occasioned by the government's failure to fully finance state-sponsored students, resulting in a liability estimated at Sh45.77 billion. The Higher Education Loans Board (HELB) is also facing a massive funding deficit due to rising student numbers and limited allocations. In the current financial year, HELB requires Sh75.06 billion to support more than 1.1 million university and TVET students, but received only Sh41.15 billion, leaving a shortfall of Sh33.9 billion. The situation is expected to worsen in the 2026/27 financial year, when HELB will require Sh112.11 billion but is projected to receive just Sh45.06 billion, creating a deficit of Sh67.42 billion. Combined with previous gaps, the three-year funding deficit now exceeds Sh112 billion. Officials warn that the shortage threatens access to higher education, particularly for needy students who rely on loans for tuition and upkeep.

Universities choke under Sh85 billion debt as 11 stare at closure

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