As pressure mounts on the government to reassess the contentious New University Funding Model (NFM), a scathing Auditor General’s report has exposed significant deficiencies in the management and operations of the Universities Fund. The semi-autonomous Kenyan agency, tasked with financing higher education, now faces intense scrutiny for its failure to fulfil its mandate and adequately support students nationwide.
Established in 2016, the Universities Fund is responsible for devising transparent and equitable criteria for distributing funds to public universities and providing conditional grants to private institutions. However, the audit exposes a troubling pattern of inefficiency and mismanagement. CEO Godfrey Monari, Board Chairman Professor Karuti Kanyinga, and trustees including Dr Charles Kirimi and Ms Zipporah W. Mungai have come under fire for their oversight of these systemic shortcomings.
The report identifies several critical issues: inaccurate applicant data, limited public awareness creating information gaps for beneficiaries, and delayed disbursements of loans and scholarships. These delays have severely disrupted students’ ability to cover tuition fees, accommodation, and essential living costs. The model’s inclusivity is also in question, with vulnerable groups—such as students with disabilities, those from marginalised areas, and Muslim students needing Sharia-compliant options—facing significant barriers to accessing support.
The Universities Fund lacks effective collaboration with key bodies like the Higher Education Loans Board (HELB) and the State Department for Technical and Vocational Education and Training (TVET). Additionally, its disconnection from the Kenya Universities and Colleges Central Placement Service (KUCCPS) hampers efforts to track students from placement to funding
Another pressing concern is the growing burden of loan repayments. With high unemployment and underemployment plaguing Kenya, graduates are increasingly unable to settle their debts, driving up default rates and jeopardising the sustainability of the revolving fund. The Auditor General warns that these trends undermine the NFM’s long-term viability.
Coordination failures further compound the problem. The Universities Fund lacks effective collaboration with key bodies like the Higher Education Loans Board (HELB) and the State Department for Technical and Vocational Education and Training (TVET). Additionally, its disconnection from the Kenya Universities and Colleges Central Placement Service (KUCCPS) hampers efforts to track students from placement to funding.
The NFM’s credibility suffered a further blow on 20 December 2024, when the High Court declared it unconstitutional. The ruling criticised the model’s reliance on parental contributions to public university funding as a violation of students’ right to education, affirming that this responsibility lies solely with the government.
Scholarship management also revealed alarming weaknesses. The audit uncovered discrepancies such as KSh 664,347 paid to eight students with untraceable registration numbers, KSh 1,994,835 disbursed to 21 students with duplicated details, and KSh 595,560 allocated to 25 applicants with incorrect study levels. Moreover, KSh 2,299,516 in scholarships went to 41 students who had deferred studies, failed to enrol, or been expelled.
Staffing shortages exacerbate these issues. The Universities Fund operates with only 32 staff against an approved complement of 51, with the Grant Management Department particularly under-resourced with two staff instead of the required ten. This has significantly hampered operational efficiency.
Adding to the Fund’s woes is a stalled contract worth KSh 3,450,000 with a local firm to deliver an integrated, data-driven risk-based CACM solution. Due for completion by 17 July 2024, the project remains unfinished as of November 2024, with critical elements like scripts and software customisations outstanding. Despite management’s demands for rectification, the supplier has not responded, and the Fund has yet to enforce breach-of-contract provisions.
The Auditor General concludes that these findings cast serious doubt on the NFM’s ability to meet students’ financial needs. With its poor management and failure to address fundamental challenges, the Universities Fund risks undermining higher education funding in Kenya. Without urgent reforms, the future of the NFM, and the students it serves, hangs in the balance.
