Why Kenya universities are set for fee-hike

University fees are set to increase to cover additional costs envisaged by public universities.

The public institutions say Sh32 billion received from the Government annually to finance higher education - an average of Sh129,059 for each of the 248,917 students - is only half the cost. They say the average unit cost for each student should be Sh259,721, which translates to Sh65 billion.

But managers of public universities want Treasury to provide the additional funding to ease the fees burden on parents and enhance the quality of learning for students. In a marked departure from the current system where each academic programme is allocated a flat rate of Sh120,000 per year, vice chancellors have now determined how much it costs to teach each programme in one academic year.

This means that each programme offered will receive funding based on a cost value known as the differentiated unit cost (DUC).

This is a requirement of Section 54 of the Universities Act, which establishes the Universities Funding Board (UFB) and mandates it "to establish the maximum differentiated unit cost for the programmes offered".

Teaching requirements

The DUC report prepared by the Vice Chancellors Committee of Public Universities in Kenya says, for instance, that to train a dentist, the university offering the programme would require Sh600,000 for one academic year. This is five times the current allocation and means the money will be adequate to purchase all the necessary teaching requirements to train a dentist complete with remuneration of the lecturer.

Medicine will require Sh576,000 per year while pharmacy will require Sh432,000. Arts (general) would require the least funding at a cost of Sh144,000 per year. Applied humanities such as languages and psychology will take up Sh180,000 per year.

In total, the report lumps together all university programmes into 14 clusters and pegs the unit cost for each.

Other programmes envisaged to require heavy funding are veterinary medicine, engineering, architecture, built environment, agriculture and education. 

If implemented, universities offering these programmes will be able to plan for each student and to deliver all the necessary teaching materials complete with adequate staffing.

Prof Francis Aduol of Technical University of Kenya chaired the VCs' committee. The report summary says the current funding formula has long been overtaken by events and explains that presently, the Government continues to pay a flat rate of Sh70,000 per academic programme.

Huge gap

Students' fees is pegged at Sh16,000 while other student costs – books, food and accommodation – are paid by the Higher Education Loans Board.

Sources familiar with the new proposals told The Standard that the present funding system leaves a huge gap that pushes universities to make do with the least resources to deliver a programme per year.

"This means that, for instance, with the flat rate funding, the university may not be able to purchase essential teaching materials and will use a lean staff to teach all categories of programmes including medicine. This affects quality," said the source.

Under the 2015-2016 financial year, the Government's budget of Sh32 billion – targeting some 248,917 students – is expected to double.
Funding these programmes will, however, not be the sole responsibility of the Government as some will come from donors and monies generated by universities.

The Standard has established that the DUC report has already been handed over to Education Cabinet Secretary Fred Matiang'i and Henry Rotich of the National Treasury. This means that based on the proposed figures, Treasury will determine how much can be carried by the Government.

"The balance is what monies generated by the Universities Funding Board and those generated by universities shall cater for," said a source.

Dr Matiang'i is said to have handed the report to the UFB last week. The board in consultation with the Cabinet Secretary is expected to develop transparent and fair criteria for allocation of funds to universities.

It is also expected to apportion the funds to universities in accordance with criteria established.