It has now come to light that the ongoing financing model of state agencies designated to fund higher education institutions has caused the current financial crisis bedevilling public universities.
According to allegations made before the Public Investment Committee on Education and Governance, the State Directorate of Higher Education and Research has paid over Sh 12 billion to private universities since 2016.
Private universities received Sh3.3 billion in the fiscal year 2021–2022, Sh2.7 billion in the fiscal year 2020–2021, and Sh1.9 billion in the fiscal year 2019–2020.
Mount Kenya University (5,489), Catholic University of East Africa (2,691), KCA University (2,724), Kabarak University (2,157), and Zetech University were the top five private universities in terms of enrollment in 2021–2022. (1,673)
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There was no flood of government-sponsored students to cause their placement at private educational institutions, despite the University Act 42 of 2012's Article 56 (1a) allowing the placement of government-sponsored students at all Universities and Colleges.
Beatrice Muganda, the principal secretary for higher education, took pains to clarify why the government-funded private institutions of higher learning based on student placement when the private universities could house them.
Grants are given to private institutions, yet our public universities are struggling and in danger of failing. Are we witnessing the underfunding of public colleges in favour of private universities? Jack Wamboka, the committee's chair, posed.
However, Muganda justified his decision by stating that the Kenya University and College Placement Board was allowed discretion to place students in private universities based on their top-choice institutions by the University Act.
The placement board has no other obligations because the procedure is lawful. The legislation gives it the authority to place students in the 35 privately held institutions that the government funds.
The PS stated, "The situation may not be tenable, particularly for public colleges, but our hands are limited by the law and any decision not related to the law could lead to litigation."
