Bear Our Burden: Government Defaults KSH 2.1 Billion

Kenya College of Accountancy, alias KCA University is asking for a debt settlement of Ksh 2.1 billion from the Government of Kenya citing a pile up of unpaid fees from the University placement program.

The Government of Kenya (GOK), in 2016, started a pilot program to expand university education by placing Government-sponsored students in private universities, as places in public facilities were limited.

The program which initially targeted 10,000 students has since grown with there being over 57,000 slots in private universities as of 2024.

With over 18,000 students placed in private universities this year, these institutions continue accepting government-sponsored students despite GOK’s slow disbursement of funds.

Speaking to the media on May 28, 2024, KCA University Vice-Chancellor Professor Isaiah Wakindiki said that since the program began in 2016, GOK owes the university KSH 2.1 billion.

“The government gives out rules that placed students shouldn’t be sent back but we have educators to pay. GOK’s funding board will occasionally deposit 10 Million instead of the required 80million. You write to them and before they reply, a semester is gone. Then another semester comes and the same happens. Then June comes and the financial year is over, and the debts are turned into pending bills,” he said.

As of February 2024, the government collectively owed private universities Ksh 31.4 billion under the Differentiated Unit Cost model, which requires the government to cover 80% of the cost, leaving the remaining to the student.

This has some forced private universities to withhold certificates of GOK-sponsored students, with others being forced to discontinue students.

Thirty-two private universities are caught up in the mess with GOK and continue to prompt the government to honour its end of the bargain and pay its dues.