NAIROBI, Kenya- Education Cabinet Secretary Julius Migos Ogamba has attributed the persistent financial challenges facing schools, technical institutions and public universities to chronic underfunding and delayed release of Exchequer funds by the National Treasury, saying the country’s education crisis goes beyond administrative delays.
Appearing before the National Assembly’s Public Investments Committee on Governance and Education (PIC-G&E) on Tuesday, Ogamba said the Ministry of Education has consistently submitted funding requests on time and immediately disburses funds to institutions once the National Treasury releases them.
“The problem is that the resources released by the National Treasury fall far below the actual funding requirements, and when the Exchequer is delayed, institutions inevitably experience cash flow challenges,” Ogamba told lawmakers.
The Cabinet Secretary appeared before the committee alongside Higher Education Principal Secretary Beatrice Inyangala, Technical and Vocational Education and Training (TVET) Principal Secretary Esther Thaara Muoria, Universities Fund Acting Chief Executive Edwin Wanyonyi and Higher Education Loans Board (HELB) Chief Executive Geoffrey Monari.
The committee is reviewing Auditor-General reports covering the 2018/19 to 2024/25 financial years, with a focus on delayed capitation disbursements to schools, teachers’ training colleges, TVET institutions and public universities.
TVET Funding Stretched
Ogamba revealed that annual government capitation for TVET institutions has remained at KSh5.2 billion for several years despite a significant increase in student enrolment.
He said the allocation now caters for both trainees under the previous funding model and scholarships under the student-centred funding model introduced in the 2023/24 financial year, yet the budget has not kept pace with demand.
According to the ministry, actual disbursements have, in several years, fallen below the approved allocation, creating funding deficits for institutions.
The ministry has so far disbursed Sh7.9 billion in scholarships under the student-centred funding model, benefiting nearly 200,000 trainees. However, the programme is already facing a cumulative funding deficit of approximately Sh14.9 billion.
Ogamba maintained that delays in capitation and scholarship payments largely stem from delayed Exchequer releases rather than inefficiencies within the ministry.
Universities Face Sh28.9 Billion Funding Gap
The Education CS painted an equally grim picture for public universities, saying they continue to grapple with structural underfunding.
He disclosed that universities required Sh29.9 billion under the student-centred funding model during the 2025/26 financial year but received only Sh18 billion, leaving a funding gap of nearly Sh11.5 billion.
Continuing students under the previous Differentiated Unit Cost (DUC) funding model required Sh40.4 billion, but only Sh23 billion was allocated, creating another Sh17.4 billion shortfall.
Overall, universities required Sh70.3 billion for scholarships and grants but received an approved budget of Sh41.2 billion, leaving a cumulative funding deficit of Sh28.9 billion.
Ogamba stressed that these figures represent budgetary shortfalls rather than money withheld by the government.
“Every shilling released to the Universities Fund was disbursed to eligible public universities,” he said.
He warned that inadequate and unpredictable funding has contributed to growing pending bills, delayed payments to suppliers, payroll challenges and disruptions to teaching, research and student services.
Ministry Seeks More Funding
To address the crisis, Ogamba said the ministry is engaging the National Treasury to secure supplementary allocations while ensuring Exchequer requisitions are submitted on time.
He added that the Universities Fund continues to verify student enrolment data before allocating resources to eliminate duplicate claims and ensure institutions receive equitable funding.
The Cabinet Secretary also appealed to Parliament and the National Treasury to increase budgetary allocations, arguing that administrative efficiency alone cannot resolve the sector’s financial challenges.
Rising Wage Bill
The committee also questioned the ministry over rising personnel costs in public universities, which have repeatedly been flagged by the Auditor-General.
Ogamba attributed the increasing wage bill to successive Collective Bargaining Agreements (CBAs), whose financial obligations have outpaced government funding.
He said the government released Sh3.8 billion in December 2025 to settle verified arrears arising from the 2017–2021 CBA, with another KSh3.8 billion expected during the current financial year.
The National Treasury has also committed Sh2.73 billion towards implementing the 2021–2025 CBA, while negotiations for the 2025–2029 CBA will be guided by affordability assessments.
The ministry has further directed universities to align recruitment with approved staff establishments, strengthen workforce planning, eliminate duplication of roles and tighten controls on personnel expenditure.
However, Ogamba cautioned against indiscriminate staff cuts, saying universities must retain adequate academic and technical staff to effectively deliver teaching, research and innovation.
“The objective is not merely to reduce the wage bill, but to ensure staffing is efficient, affordable and aligned with institutional needs. Sustainable higher education financing requires adequate funding, predictable disbursement and prudent financial management working together,” he said.