Education CS Supports the Waivering of Unpaid University Bills
Education CS Supports the Waivering of Unpaid University Bills. Ezekiel Machogu, the cabinet secretary for education, said that discussions with the National Treasury and other stakeholders are ongoing in order to forgive some of the large Sh63 billion in unpaid bills for public universities.
To find out if the Kenya Revenue Authority (KRA) can be able to waive the dues owed from Statutory deductions from it that were not paid due to a lack of funds, such as Pay As You Earn and the National Hospital Insurance Fund (NHIF), Machogu stated that they are currently gathering reports from the various Universities and will discuss them with the government and other stakeholders in a committee that has been formed. This will help the universities pay the other debts, such as student loans and other obligations.
According to the CS, due to insufficient government support, the 32 public institutions have accrued Sh. 63 billion in unpaid invoices over the last five to six years.
According to sources, the government used a Differentiated Unit Cost (DOC) system during that time, whereby the state paid 80% of each student’s overall course costs, regardless of their socioeconomic position or the course’s exact cost.
Only 68 percent of the entire finance needed by public universities was provided over a six-year period due to insufficient funding, as reported by the CS, leading to the accumulation of indebtedness.
On Saturday in Naivasha, Machogu addressed the Senate Education Committee, which is chaired by Murang’a Senator Joseph Nyutu.
According to Machogu, this equitable support for all university students did not take the students’ socioeconomic statuses into consideration.
The new funding model, however, divides students into vulnerable, extremely needy, needy, and less needy groups, guaranteeing that no child in need is turned away for lack of funds and that institutions receive enough support.
The new funding model, which was proposed and approved by the government, aims to harmonise course costs and alleviate the numerous financial issues that colleges and institutions of technical and vocational education have faced.
In this new financing plan, the government will pay for 82% of tuition through scholarships, while the Higher Education Loans Board (HELB), which has been funded to the tune of Sh29 billion for the current fiscal year, would pay for 18% of tuition through loans.
According to data from the Ministry of Higher Education in 2021, as of last year, the 32 public institutions in the nation were burdened with a combined debt of Sh. 62 billion as a result of insufficient funding from the government as a result of limited resources.
There were over 563,000 university bills.
Ezekiel Machogu, the cabinet secretary for education, said that discussions with the National Treasury and other stakeholders are ongoing in order to forgive some of the large Sh63 billion in unpaid bills for public universities.
To find out if the Kenya Revenue Authority (KRA) can be able to waive the dues owed from Statutory deductions from it that were not paid due to a lack of funds, such as Pay As You Earn and the National Hospital Insurance Fund (NHIF), Machogu stated that they are currently gathering reports from the various Universities and will discuss them with the government and other stakeholders in a committee that has been formed. This will help the universities pay the other debts, such as student loans and other obligations.
According to the CS, due to insufficient government support, the 32 public institutions have accrued Sh. 63 billion in unpaid invoices over the last five to six years.
According to sources, the government used a Differentiated Unit Cost (DOC) system during that time, whereby the state paid 80% of each student’s overall course costs, regardless of their socioeconomic position or the course’s exact cost.
Only 68 percent of the entire finance needed by public universities was provided over a six-year period due to insufficient funding, as reported by the CS, leading to the accumulation of indebtedness.
On Saturday in Naivasha, Machogu addressed the Senate Education Committee, which is chaired by Murang’a Senator Joseph Nyutu.
According to Machogu, this equitable support for all university students did not take the students’ socioeconomic statuses into consideration.
The new funding model, however, divides students into vulnerable, extremely needy, needy, and less needy groups, guaranteeing that no child in need is turned away for lack of funds and that institutions receive enough support.
The new funding model, which was proposed and approved by the government, aims to harmonise course costs and alleviate the numerous financial issues that colleges and institutions of technical and vocational education have faced.
In this new financing plan, the government will pay for 82% of tuition through scholarships, while the Higher Education Loans Board (HELB), which has been funded to the tune of Sh29 billion for the current fiscal year, would pay for 18% of tuition through loans.
According to data from the Ministry of Higher Education in 2021, as of last year, the 32 public institutions in the nation were burdened with a combined debt of Sh. 62 billion as a result of insufficient funding from the government as a result of limited resources.
During the 2022–2023 academic year, universities in Kenya had over 563,000 students enrolled. At the beginning of the 2021/22 academic year, Kenyan universities had a total enrollment of about 562,100 students. Government funding is crucial to the functioning of public universities.
Only $793 million (around Sh. 80 billion) was allotted by the National Treasury for higher education during the current fiscal year (2022-23). To operate efficiently, the institutions had asked the government for $1,8 billion (about Sh. 180 billion) in their budget projections.
Machogu is confident that the new financial model would improve the nation’s educational system, and he also noted that the Ministry is putting some of the recommendations of the presidential working committee on education into practise, which were given to the President earlier this year.
He said that in order to ensure the smooth continuation of educational operations, his ministry is collaborating with the National Treasury to look into how the government might distribute capitation money to educational institutions more quickly.
He claims that the government has allotted sh. 22,240 for day secondary students, sh. 15,040 for junior secondary students, sh. 53,000 for boarding and other amnesties at extra county and national institutions, and sh. 45,000 for students in county category boarding schools.
According to Machogu, “We intend to pay 50% of the government capitation to our schools during the first term, 3% during the second term, and 2% to tour the schools during the third term.”
He claims that the government also decreased the price of tertiary vocational education training (TVET) fees per student to Ksh. 13,000, a change that caused enrolment to rise over the past five years from 70,000 to 300,000 students.
According to the Education CS, TVET is crucial for coordinating and promoting training for students to meet the highest international standards. The government will also ensure connections with businesses so that students can gain practical experience and participate in government initiatives like the affordable housing project.
According to the CS, 9,000 or more students have chosen to enrol in local TVETS institutions in response to the growing need for technically skilled labour both locally and abroad.
In response to the senators’ worries about financing delays that have affected the quality of instruction in their schools, Machogu stated that the ministry will also send capitation monies to special schools and boost the number of teachers and carers.
On his part, Nyutu expressed satisfaction with the steps the Ministry has taken to address issues in the educational sector.