Kenya’s Public Universities: Straining Under the Weight of Debt

Kenya’s public university system is approaching a financial cliff edge. Between 2021 and 2024, public university enrolment grew by 14%—from 448,000 to 522,000 students—while private university numbers declined by 5%. The shift signals growing reliance on public institutions. But as the number of students rises, the financial foundations beneath these universities are rapidly eroding.

Parliament’s Education Committee has warned of a looming crisis as public universities sink deeper into debt, with government funding falling far short. Lawmakers call the support “a drop in the ocean” compared to the growing deficit.

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At the top of the debt ladder is the University of Nairobi, with Ksh.13.2 billion in accumulated liabilities. It is followed closely by the Technical University of Kenya (Ksh.11.1B), Kenyatta University (Ksh.10.6B), and Egerton University (Ksh.10.1B). These institutions are not only grappling with bloated payrolls and unpaid supplier bills, but also growing student numbers—straining facilities and academic staff alike.

Meanwhile, the Higher Education Loans Board (HELB), a lifeline for many students, is also gasping for air. HELB was sett to received Ksh.41.1 billion, but needs Ksh.76.3 billion to meet loan demand—leaving a Ksh.35.1 billion deficit. The result is delayed disbursements, anxious students, and a growing crisis of confidence in the system , according to Citizen Digital.

What’s Gone Wrong—and How to Fix It

The problem is two-fold: unsustainable funding models and inefficiencies in university spending. Tuition revenues have stagnated, while capitation from the state has not kept pace with rising enrolment. Public universities, once elite institutions, are now mass education providers—without the matching financial support.

How to Fix

1. Boost government funding tied to performance.

2. Streamline operations by cutting overheads and merging services.

3. Partner with the private sector to diversify income.

4. Go digital to cut costs and improve efficiency.

5. Broaden HELB’s funding base through innovative financing.

Kenya’s universities remain a cornerstone of its knowledge economy. Without decisive action, they risk becoming victims of their own expansion