Universities facing issues 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 alongside excessive staffing as the main obstacle preventing institutions of higher education from managing their payroll, operational, and maintenance costs.
Referring to the Technical University of Kenya (TU-K), the Committee noted that since it became a fully-fledged university on January 15, 2013, the institution has been suffering from ongoing funding deficits. Its estimated monthly income of Kshs. 207 million, which includes Kshs. 63. 3 million in capitation, fails to meet the monthly expenses of Kshs. 314 million.
The lawmakers pointed out an unmet monthly payroll of Kshs. 272 million, which has contributed to a total debt of Kshs. 12. 99 billion, including arrears from the 2017–2021 Collective Bargaining Agreement (CBA) cycle.
As a result of these cash flow issues, the University opted to pay 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 strains have subsequently resulted in the buildup of outstanding bills.
Shifting focus to Moi University, the Committee highlighted that this institution is also encountering challenges in covering its daily operational costs, in addition to not remitting payroll deductions. The pending bills as of March 31, 2025, were recorded at Kshs. 9,234,952,068.
Consequently, Moi University too decided to pay 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 the staff salaries.
At present, the total due to the Pension Scheme and Provident Fund is around Kshs. 4. 2 billion, including interest and penalties. The Committee remarked that this situation has added to the rising number of strikes at the university.
Members also expressed concerns regarding the return to office by Vice-Chancellors who had previously been placed on leave, particularly citing Kenyatta University.
The Committee noted that Prof. Paul Wainaina went on leave on April 15, 2024, intending to use accumulated leave days, as per a Circular from the Chief of Staff and Head of the Public Service. Records showed that Prof. Wainaina had accrued 202 leave days, which were set to expire on January 30, 2025.
However, after the conclusion of the initial leave period, the Council decided to place Prof. Wainaina on extended leave.
The Committee also learned that Prof. Wainaina contends that his approved leave concluded on January 30, 2025, and insists that he should therefore be permitted to return to work.
Additionally, the lawmakers were informed that the Professor claims he is not bound by the retirement age due to being on a fixed-term contract, which expires on January 26, 2026.
Seeking understanding on the issue, the lawmakers pointed out that several staff members have been occupying acting positions for extended durations, which is against legal and regulatory norms. They specifically mentioned the acting Vice-Chancellor of Kenyatta University, who has remained in an acting capacity for one year.
In reply, the Cabinet Secretary for Education, Mr. Julius Migos Ogamba, mentioned that to address these challenges, the Ministry of Education, in collaboration with TU-K, had crafted a recovery plan that encompasses various measures, such as Direct Payroll Support, which aims to provide a net payroll assistance of Kshs. 145 million.
The CS indicated that this support is intended to be available from January 2025 until 30th June 2025 to ensure that staff salaries are disbursed punctually.
The Ministry of Education also committed to directing conditional grants to fill the budget deficit, with gradual allocations planned for the forthcoming Financial Years from 2025/2026 to 2031/2032 to cover gross salaries and guarantee the timely remittance of statutory deductions.
Under this arrangement, TU-K is anticipated to supply funds during the financial years 2025/2026, 2028/2029, and 2029/2030 to settle the outstanding obligations of the dissolved TU-K Staff Retirement Benefits Scheme, consistent with the overall recovery strategy.
Concerning Moi University, CS Migos informed the Committee that the Government had allocated Kshs. 500 million to meet the financial needs for staff by the end of January 2025, and this sum had been allocated to the University.
Additionally, to ensure a fair resolution while maintaining financial sustainability for staff, the repayment plan for the outstanding debts incurred by Moi University, totaling Kshs. 8. 6 billion, is scheduled to be executed in a phased approach.
“We are collaborating with all stakeholders in the university sub-sector to ensure that our universities operate efficiently and sustainably to prevent financial crises, as we have witnessed before,” the CS conveyed to the lawmakers.
“A critical aspect of this effort is strong corporate governance, which we are striving to establish by appointing competent and qualified individuals as Council members and senior management in our public universities,” Mr. Migos added.
Regarding Prof. Wainaina, the CS remarked that the situation was presently in court and the ministry was awaiting the verdict of the legal proceedings.
“As a Ministry, we have adopted the stance that we will be guided by the Court’s decision once the matter is resolved,” CS Migos stated.
Members praised CS Migos for the detailed response and the prompt actions taken to tackle some of the challenges confronting institutions of higher education but urged him to take a firm position, especially about what they termed “rogue University councils” that are politically driven and consequently appoint unqualified vice-chancellors and principals who ultimately mismanage the institutions.