Mounting Financial Crisis

Kenya's public universities are facing an unprecedented financial crisis, with collective debts soaring to over Sh85 billion, a situation that threatens to derail critical education reforms, including the transition to the Competency-Based Curriculum (CBC) at the university level. This staggering debt, owed to various statutory bodies, suppliers, and staff pension schemes, has left many institutions struggling to meet their basic operational costs, including paying salaries, which has led to frequent industrial action by lecturers.

According to a July 2025 report by the Nation, Education Cabinet Secretary Julius Ogamba confirmed the Sh85 billion figure before the National Assembly's Education Committee, a significant increase from Sh60 billion in 2022. The Auditor General's report for the 2023/2024 financial year painted an equally grim picture, warning that at least 21 public universities were on the verge of financial collapse due to negative working capital. Some of the most affected institutions include the University of Nairobi, Kenyatta University, and the Technical University of Kenya, which collectively hold a substantial portion of this debt.

The debt crisis is multifaceted, stemming from years of chronic government underfunding, mismanagement, and unremitted statutory deductions. For years, the government's contribution under the Differentiated Unit Cost (DUC) model has been declining, creating a cumulative shortfall of Sh168 billion by the 2023/2024 financial year. This has forced universities to default on payments for Pay As You Earn (PAYE), pensions, and supplier invoices, leading to a precarious financial existence.

Impact on Competency-Based Curriculum (CBC) Rollout

This financial instability poses a direct threat to the successful implementation of the Competency-Based Curriculum in higher education. The first cohort of CBC students is expected to join universities in 2029, requiring significant investment in new infrastructure, learning materials, and extensive training for academic staff to align with the new pedagogical approaches. However, with universities struggling to meet their current obligations, their preparedness for this monumental shift is in serious doubt.

A 2024 study published in the Indonesian Journal of Education found that Kenyan public universities are largely not ready for the CBC rollout, citing inadequate infrastructure, a lack of necessary materials, and insufficient lecturer training. The curriculum, which emphasizes developing competencies like critical thinking, problem-solving, and digital literacy, requires a fundamental shift from traditional teaching methods. Without adequate funding to facilitate this transition, the quality of education for the first CBC university graduates could be severely compromised.

Government Interventions and Systemic Challenges

The Kenyan government has attempted to address the funding crisis through various measures, including the introduction of a new student-centered funding model in 2023. This model aims to allocate financial aid based on students' assessed needs, combining scholarships, loans, and household contributions. However, the implementation of this model has been fraught with challenges, including a High Court ruling that declared it unconstitutional due to a lack of public participation, and complaints from students being placed in incorrect funding bands. In response to public outcry, the Ministry of Education announced a reduction in university fees effective September 2025.

Furthermore, unresolved Collective Bargaining Agreements (CBAs) with university staff have exacerbated the financial strain. A significant portion of the universities' debt stems from underfunded CBAs, with lecturers' unions consistently demanding the settlement of billions in arrears. As of November 2025, a petition before the Committee on Education sought the allocation of KSh 7.9 billion to fully implement the 2017-2021 CBA. These persistent labour disputes disrupt learning and add to the instability of the higher education sector.

As Kenya stands at a critical juncture in its educational reforms, the deep-seated financial crisis in its public universities presents the most significant obstacle. Addressing this monumental debt is not merely a financial imperative but a prerequisite for the successful rollout of the Competency-Based Curriculum and for securing the future quality and sustainability of higher education in the country.