Treasury Cabinet Secretary John Mbadi has warned of looming mass layoffs at some universities and the closure of select campuses across the country due to a cash crunch.
Appearing before the National Assembly's Committee on Education on Thursday, July 24, Mbadi also revealed the government's plan to outsource services in cash-strapped institutions.
According to him, an overhaul of some of the services within universities was one among several strategies proposed to salvage the future of the once-prestigious institutions.
Mbadi also stated that the government was no longer able to meet the needs of state-sponsored university students, with the education of most students in universities now hanging in the balance
He revealed that the Ministry of Education, jointly with the universities and the National Treasury, had commenced the development of a new strategy to ensure 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," said Mbadi.
"These strategies include reducing unnecessary administrative costs, resizing staff, outsourcing services, and rationalising satellite campuses," he added.
Mbadi disclosed that the government owes some universities over Ksh4 billion, money the CS claimed was spent on educating students for free since 2016.
During the meeting, the CS also announced the government's plan to introduce a new funding model that shifts part of the education cost to parents.
"This new model that was being resisted was helping students and universities come out of financial distress. Let us not lie to ourselves that as a country we can fully finance university education," the CS reiterated.
At the same time, Mbadi also claimed that free basic education was no longer sustainable, citing the increased number of students in schools and constrained fiscal resources.
According to the CS, the government was also considering requiring students to pay registration fees for national exams beginning in the next financial year.
