Find a solution for the cash crunch at varsities

Moi University in Eldoret. FILE PHOTO | NMG

What you need to know:

  • The fall in allocations from the government, coupled with reduced takings from the module II programme, has exposed the soft underbelly of the institutions, which are now running deficits and struggling to meet operational costs.
  • In the past year or so, Kenyans have been treated to several failed interventions to address the problem, and now the very existence of some of the institutions is in doubt.
  • A drop in the quality of higher education will be catastrophic for the country’s economy and future prospects of growth.

It is no longer in doubt that public universities are struggling financially, and that they require urgent intervention to stay afloat.

The fall in allocations from the government, coupled with reduced takings from the module II programme, has exposed the soft underbelly of the institutions, which are now running deficits and struggling to meet operational costs.

In the past year or so, Kenyans have been treated to several failed interventions to address the problem, and now the very existence of some of the institutions is in doubt.

The main campuses of Moi University and Egerton University have already seen disruptions to their academic programmes this year, and more will follow if nothing is done to alleviate the cash flow problems.

These problems must be solved urgently as they risk compromising the quality of higher education and graduates in the country.

Stakeholders must see the bigger picture and avoid the grandstanding and self-interest that have hampered previous efforts at reforming the higher education sector.

A drop in the quality of higher education will be catastrophic for the country’s economy and future prospects of growth.

Companies are relying on universities to produce a skilled workforce that can meet the challenges of growing in future.

These graduates are the future captains of industry, the people who will be relied upon to make decisions that will be vital in keeping the economy going.

The universities have been keen on increasing fees now that student capitation is going down. The International Monetary Fund (IMF) recommendation is to close down or merge some institutions. The government needs to commit firmly to some kind of reforms soon if the universities are to be saved from collapse.

As this newspaper has argued previously, partnerships with the private sector in areas such as research should also be seriously considered and pursued.

Kenyan universities can borrow a leaf from their peers in developed countries where partnerships with private donors and companies give the institutions large amounts in endowments which are used to fund academic research programmes and offer scholarships for the benefit of the wider economy.

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Note: The results are not exact but very close to the actual.