The Technical University of Kenya campus along along Haile Selassie Avenue in Nairobi was cosed indefinitely on February 3, 2025.
Moi University, Egerton University and the Technical University of Kenya (TUK) are staring at deeper financial turmoil as the Treasury proposes budget cuts in the year starting July, compounding their already ballooning pending bills.
Budget documents tabled in Parliament show Moi’s recurrent budget will be Sh1.96 billion, down from Sh3.3 billion, while that of Egerton’s will be Sh1.3 billion, down from Sh1.6 billion in President William Ruto’s third spending plan of nearly Sh4.2 trillion.
The Technical University of Kenya (TUK), whose pending bills have ballooned to Sh12 billion, is set to receive Sh901 million in the year starting July, down from Sh1.18 billion in the current year.
The revelations come on the back of cash flow challenges by the universities that have made it difficult to meet financial obligations, including debts, operational costs, and staff salaries.
The recurrent budget covers day-to-day operational expenses such as salaries, utilities, maintenance and office supplies.
Moi University is grappling with a debt burden that has ballooned to Sh7.83 billion, that has seen the institution suffer prolonged strikes, default on salary payments and closures following unrest by its teaching and non-teaching staff.
Treasury in a bid to turn around the fortunes of the troubled institution, apportioned an additional Sh1.8 billion in a supplementary budget in February to facilitate staff salaries and other recurrent expenses.
Barely a month ago, Moi University issued a notice of redundancy to formalise plans to lay off staff as a part of a raft of measures to cut costs in a bid to salvage the institution.
The TUK is planning a similar move on the back of the Sh12 billion debt that has seen the institution resort to paying net salaries to staff.
Egerton University Njoro Campus main gate
Vice Chancellor Benedict Mutua recently disclosed to the National Assembly’s Public Investment Committee on Education that the institution has been unable to pay full salaries to staff since 2013.
Currently, the TUK owes statutory deductions of Sh6.7 billion despite having deducted these from staff salaries. It owes another Sh4.3 billion to pension funds and Sh305.8 million to banks, saccos and insurance deductions.
Other pending bills contributing to the Sh12 billion debt include monies owed to contractors and creditors (Sh360.1 million), third party funds (Sh70.2 million) , CBA arrears (Sh761 million) and staff claims (Sh398.8 million).
Egerton University, on its part, with a debt of Sh7.69 billion, has been struggling to pay staff, with a report by the Public Service Commission (PSC) saying it was the worst hit in salary arrears in the year ended June 2024.
Other universities facing cuts in the coming financial year include Jomo Kenyatta University of Science and Technology (JKUAT). University of Kabianga, Kirinyaga University, Murangá University of Technology, Taita Taveta University, Garissa University, Rongo University and Kibabii University.
The Technical University of Kenya campus along along Haile Selassie Avenue in Nairobi on February 3, 2025.
The budget documents show the Treasury will increase recurrent budgets for the University of Nairobi (UoN), Kenyatta University (KU) and Maseno University (MU).
UoN’s budget for the year starting July will be Sh2.8 billion from the current Sh2.3 1 billion, KU’s will be 2.5 billion from the current Sh2.27 billion, while MU’s will be 2 billion from Sh1.52 billion.
Total recurrent budget for Higher Education is set to rise to Sh87.7 billion from Sh80.6 billion in the current financial year.
