Treasury Cabinet Secretary John Mbadi has issued a stark warning of impending mass layoffs at some public universities and the closure of select campuses across Kenya, attributing these drastic measures to a severe cash crunch facing institutions of higher learning.
Appearing before the National Assembly’s Committee on Education on Thursday, July 24, Mbadi also revealed the government’s strategic plan to outsource various services in these financially distressed institutions. According to the CS, an “overhaul of some of the services within universities” is among several critical strategies proposed to salvage the future of what were once highly prestigious educational institutions.
Mbadi further stated that the government is no longer able to fully meet the financial needs of state-sponsored university students, indicating that the continued education of a significant number of students is now hanging in the balance.
He disclosed that the Ministry of Education, in collaboration with universities and the National Treasury, has commenced the development of a new, comprehensive reform strategy aimed at ensuring long-term financial sustainability within institutions of higher learning. “The Ministry of Education, in collaboration with universities, is expected to develop a comprehensive reform strategy that will ensure financial sustainability,” Mbadi affirmed.
He elaborated on the proposed strategies: “These strategies include reducing unnecessary administrative costs, resizing staff, outsourcing services, and rationalizing satellite campuses.” The “resizing staff” directly points to the likelihood of job losses across various university departments.
A significant point of contention raised by Mbadi was the revelation that the government currently owes some universities over Ksh4 billion (approximately $30 million USD) in unpaid dues. The CS claimed this substantial sum was accrued due to the government’s past policy of effectively “educating students for free” since 2016, implying a significant financial burden on the state and, consequently, the universities.
During the committee meeting, Mbadi also reiterated the government’s plan to introduce a new funding model for university education, which shifts a portion of the education cost directly to parents. This model, which has faced considerable resistance from various stakeholders, is, according to Mbadi, essential for helping both students and universities emerge from their current financial distress. “Let us not lie to ourselves that as a country we can fully finance university education,” the CS emphasized, underscoring the unsustainability of the current system.
In a related revelation, Mbadi also contended that free basic education was no longer sustainable, citing the ever-increasing number of students in schools and severely constrained national fiscal resources. As a further measure to alleviate financial strain, the CS disclosed that the government was considering requiring students to pay registration fees for national examinations, a policy shift that could potentially be implemented as early as the next financial year.
These announcements signal a major restructuring of Kenya’s education funding and administration, likely to generate widespread debate and impact students, parents, and university staff across the country.