Public universities face Ksh.29B funding deficit - CS Ogamba tells MPs

Education Cabinet Secretary Migos Ogamba told lawmakers that the Ministry of Education is not withholding funds but is instead grappling with a widening funding deficit as budget allocations continue to fall below the sector's actual financial needs.

According to the CS, the funding gap has now reached nearly Ksh.29 billion. The ministry is now exploring alternative revenue streams while pushing for increased budgetary allocations to bridge the deficit.

Public universities continue to grapple with a massive funding shortfall stemming from what the Ministry of Education has described as budgetary constraints.

Appearing before the National Assembly's Public Investments Committee on Governance and Education, Ogamba said the funding requirements for the public university sector have significantly exceeded the approved budgetary allocation.

"We normally indicate the amount we require, but what we receive is not sufficient. That is what leads to the deficit," Ogamba said.

For the 2025/2026 financial year, the government required nearly Ksh.30 billion to finance first-year students under the Student-Centred Funding Model but allocated only Ksh.18.4 billion, leaving a deficit of Ksh.11.5 billion.

Continuing students under the Differentiated Unit Cost Funding Model also face a funding gap of Ksh.17.46 billion after the sector received Ksh.23 billion against a requirement of Ksh.40.47 billion.

Combined, the university sector requires Ksh.70.39 billion for scholarships and grants but received only Ksh.41.42 billion, resulting in an overall funding gap of almost Ksh.29 billion.

"We will therefore continue to engage Parliament, the National Treasury and relevant stakeholders towards the progressive alignment of funding for public universities," Ogamba said.

The Maungu-led committee questioned the government's priorities, noting that parents have been forced to shoulder the financial burden as institutions struggle with funding gaps.

The committee also called for action against corrupt heads of institutions, warning that mismanagement and financial impropriety are worsening the challenges facing learning institutions.

"Every institution appearing before this committee says it has not received its allocation. If this government can find money for gas cylinders and mattresses in Ol Kalou, surely it can find money for these students," Embakasi West MP Mark Mwenje said.

"We have a few vice-chancellors against whom this committee will be making recommendations because we have uncovered theft of public resources. Just yesterday, we had a university that could not explain how public funds had been spent," Luanda MP Dick Maungu said.

Ogamba also told the committee that the ministry is making progress in settling historical debt.

According to the CS, Ksh.3.88 billion was released in December 2025 as the first tranche of salary arrears under the 2017-2021 Collective Bargaining Agreement, with the remaining balance expected to be funded in the 2026/2027 financial year.

Lawmakers also called on the Ministry of Education to take firm action against senior school principals accused of overcharging parents contrary to the ministry's guidelines.