Varsities face crisis as Sh3.2 billion slashed

Universities could sink into deeper crisis after Sh3.2 billion was slashed from their budget.

Higher Education PS Collette Suda wants the money returned.

Tuesday, MPs heard that several programmes, including loans offered to students by the Higher Education Loans Board, would be affected.

Prof Suda explained that the recurrent estimates of Sh89.6 billion reduced by Sh2.4 billion. She further explained that their supplementary estimates reduced the approved allocation of Sh87.1 billion to Sh86.3 billion.

“The cumulative reduction in budgetary requirement resource requirement for State Department is Sh3.2 billion and this has adversely affected the existing programmes and sub-programmes,” Suda said.

"Performance indicators are dynamic. Once students are admitted, they cannot be ejected on basis of government austerity," she told the committee chaired by Julius Melly.

Growing number

“We request consideration for increased allocation to the State Department in the 2019/20 financial year to cater for the growing number of KCSE candidates qualifying for admissions to universities and reinstate the Sh3.2 billion,” said Suda.

Melly said the matter was under consideration. “We are finalising the report and we shall communicate to you in good time. I assure you we have a good report”.

The plea to reinstate the allocation comes as universities declared they were facing a serious financial crisis. Universities have called for a new financing regime so each student can receive monthly capitation sent to the university as per the programme of study.

Under the regime, students financing would be pegged on a percentage of the total cost of each programme as captured in the Differentiated Unit Cost.