Government issues directives to vice-chancellors as 23 universities become insolvent
Government issues directives to vice-chancellors as 23 universities become insolvent
Head of Public Service Felix Koskei has revealed that the government issued new directives to vice-chancellors after 23 public universities became insolvent.
In an article published on a local daily newspaper on Monday, May 26, Koskei noted that the government had put a ban on new projects for universities that have stalled projects.
Additionally, he added that the government would be auditing the projects in the institutions to establish the use of funds.
“A forensic audit is underway to trace cost escalations, expose mismanagement, and recover misallocated resources. With 23 public universities technically insolvent, financial sustainability is an imperative,” read the article in part.
“Revenue diversification, professional management of income-generating units, and real-time financial reporting are a must.”
Equally, the VCs were advised to observe equity in hirings and implement performance contracts to promote good governance.
“The government has issued unambiguous directives: governance must be reclaimed; the demarcation between council oversight and university administration must be observed; and performance contracts must be enforced,” Koskei added.
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“Succession planning is a strategic obligation, not a discretionary act. Vice-chancellors and councils must ensure that leadership transitions and staff appointments are anchored in merit and institutional continuity, not political manipulation or ethnic tokenism.”
Public universities have been in debt, running into billions, with many of the institutions unable to pay their suppliers.
As revealed by the Controller of Budget in the 1st quarter report for the 2025/2025 financial year, public universities and top polytechnics have pending bills of over Ksh66 billion.
The leading universities with pending bills include Kenyatta University (Ksh12 billion), the University of Nairobi (Ksh11 billion) and the Technical University of Kenya (Ksh9 billion).
Moi University has pending bills of Ksh6.2 billion, while Egerton University has pending bills of Ksh7 billion.
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