Education Ministry Faces Mounting Debt Crisis as Universities and Schools Struggle to Stay Afloat
Kenya’s Ministry of Education is grappling with a worsening financial crisis, with debts across the sector now surpassing Ksh200 billion. The financial strain has triggered disruptions in institutions of higher learning and public schools, raising concerns over the sustainability of education services in the country.
Public universities are the hardest hit, collectively owing Ksh85 billion, largely in unpaid taxes and supplier bills. Kenyatta University and the University of Nairobi are among the most affected, each burdened with arrears exceeding Ksh12 billion. The situation has crippled essential operations in these institutions, forcing administrators to scale down critical services and delay payments to staff and contractors.
Private universities have not been spared either. The government owes them Ksh65.5 billion under the Differentiated Unit Cost (DUC) model, a framework meant to fund government-sponsored students placed in private institutions. The delay in disbursements has left several universities struggling to meet operational costs, threatening the quality and continuity of academic programs.
In public basic education, the crisis is equally severe. Schools are facing a funding gap of about Ksh64 billion, with persistent delays in capitation and underfunding disrupting learning activities. Some schools have resorted to cutting non-essential programs and appealing to parents for support to keep operations running.
The Kenya National Examinations Council (KNEC) has also been affected by the budget shortfall. For the 2025 national examinations, KNEC had requested Ksh12.58 billion but received only Ksh5.9 billion. The shortfall forced the council to reallocate funds from other education programs, creating additional strain within the ministry’s already stretched budget.
Meanwhile, teachers continue to await long-promised salary reviews and promotions that have stalled due to financial constraints. The delay has fueled discontent within the education sector, with lecturers in public universities already on strike over a disputed Collective Bargaining Agreement (CBA) between the University Academic Staff Union (UASU) and the government.
As financial pressures mount, education stakeholders are calling for urgent intervention to stabilize the sector. They warn that without a clear debt management and funding strategy, Kenya risks a prolonged education crisis that could derail access to quality education and undermine progress toward national development goals.
