Universities facing challenges with excessive staffing and unchecked growth

Universities facing challenges with excessive staffing and unchecked growth

The Public Investments Committee on Governance and Education, led by Bumula MP, Hon. Jack Wamboka, has pinpointed the unchecked growth of universities, along with excessive staffing, as the chief obstacle preventing higher learning institutions from maintaining their payroll, operational, and maintenance costs.

Pointing to the Technical University of Kenya (TU-K), the Committee remarked that since its designation as a full-fledged university on January 15, 2013, the institution has experienced persistent funding shortages. Its estimated monthly revenue of Kshs. 207 million, which includes Kshs. 63. 3 million in capitation, is inadequate to meet the monthly expenses of Kshs. 314 million.

The lawmakers emphasized a monthly salary obligation of Kshs. 272 million that has gone unmet, resulting in a total debt of Kshs. 12. 99 billion, which encompasses arrears from the 2017–2021 Collective Bargaining Agreement (CBA) period.

As a result of these cash flow issues, the University has turned to paying net salaries to all employees, neglecting to remit statutory deductions (pensions, PAYE, and housing levy) and third-party deductions (union dues, bank loans, SACCOs, welfare contributions, and insurance premiums) from staff salaries. These financial challenges have led to the buildup of outstanding bills.

Focusing on Moi University, the Committee noted that this institution has similarly struggled to cover its daily operational expenses, in addition to failing to remit payroll deductions. The pending bills as of March 31, 2025, totaled Kshs. 9,234,952,068.

Consequently, Moi University has also resorted to paying net salaries to all employees, failing to remit statutory deductions (pensions, PAYE, and housing levy) and third-party deductions (union dues, bank loans, SACCOs, welfare contributions, and insurance premiums) from the employees’ salaries.

At present, the outstanding amount owed to the Pension Scheme and Provident Fund is approximately Kshs. 4. 2 billion, including interest and penalties. The Committee noted that this scenario has contributed to the rising number of strikes at the university.

Members also expressed concerns regarding the resumption of office by Vice-Chancellors who had previously been placed on leave, particularly mentioning Kenyatta University.

The Committee noted that Prof. Paul Wainaina began his leave on April 15, 2024, planning to utilize accrued leave days, as per a Circular from the Chief of Staff and Head of the Public Service. Documentation showed that Prof. Wainaina had accumulated 202 leave days, which were due to expire on January 30, 2025.

However, at the end of the original leave period, the Council decided to place Prof. Wainaina on extended leave.

The Committee was informed that Prof. Wainaina believes his sanctioned leave concluded on January 30, 2025, and asserts that he should therefore be permitted to return to office.

Additionally, the lawmakers were informed that the Professor claims he is exempt from retirement age regulations because he is on a fixed-term contract, which concludes on January 26, 2026.
Seeking clarification on the issue, the lawmakers observed that several staff members have been serving in acting roles for extended periods, which goes against legal and regulatory standards. They particularly mentioned the acting Vice-Chancellor of Kenyatta University, who has held the acting position for one year.

In reply, the Cabinet Secretary for Education, Mr. Julius Migos Ogamba, indicated that to address these issues, the Ministry of Education, along with TU-K, had crafted a recovery plan that encompasses multiple strategies, including Direct Payroll Support, which will offer a net payroll support of Kshs. 145 million.

According to the CS, the assistance is set to be provided for the timeframe from January, 2025 to 30th June, 2025 to guarantee that staff salaries are disbursed punctually.

The Ministry of Education also committed to directing conditional grants to fill the budget gap, with staged allocations over the forthcoming Financial Years from 2025/2026 to 2031/2032 to cover gross salaries and facilitate timely payment of statutory deductions.

Under this arrangement, TU-K is anticipated to supply funds throughout the financial years 2025/2026, 2028/2029, and 2029/2030 to resolve the outstanding debts of the dissolved TU-K Staff Retirement Benefits Scheme, consistent with the broader recovery framework.

Concerning Moi University, CS Migos informed the Committee that the Government had earmarked Kshs. 500 million to meet the financial needs for staff by the end of January 2025, and that this sum had been allocated to the University.

Additionally, to ensure a fair resolution while maintaining financial stability for staff, the repayment plan for the outstanding bills incurred by Moi University, totaling Kshs. 8. 6 billion, is scheduled to be executed in a phased approach.

“We are collaborating with all parties in the university sub-sector to guarantee that our universities operate effectively and sustainably so that they do not encounter financial crises as experienced previously,” the CS informed the lawmakers.

“A crucial aspect of this is sound corporate governance, which we are striving to implement by appointing qualified and appropriate individuals as Council members and as senior management in our public universities,” Mr. Migos added.

Turning to the case of Prof. Wainaina, the CS remarked that the matter was currently in litigation and the ministry was awaiting the legal proceedings’ conclusion.

“As a Ministry, we have adopted the stance that we will follow the Court’s decision once the issue is resolved,” CS Migos.

Members praised CS Migos for the enlightening response and prompt action taken to tackle some of the challenges confronting institutions of higher learning but urged him to adopt a resolute position, particularly regarding what they labeled as “rogue University councils” that are politically inclined and consequently appoint unqualified vice-chancellors and principals who ultimately mismanage the institutions.