Nairobi — Budgetary cuts within the Ministry of Education will affect the dreams of 153, 292 students set to join universities beginning September this year.
The allocations meant for institutions offering loans and scholarships has been slashed following the withdrawal of the Finance Bill 2024.
Higher Education Loans Board (HELB) and Universities Fund were allocated Sh31.8 billion and Sh19.5 billion respectively in financial year 2023/2024 for funding year 1-6 student loans and scholarships.
However, in the financial year 2024/2025 this has been reduced to Sh31.1 billion and 16.9 billion for year 2-6."
Higher Education Principal Secretary Beatrice Inyang'ala told the National Assembly Committee on Education the revised budget estimates will hinder students learning in higher learning institutions.
"This leaves a total of 153, 292 year 1 students (KCSE 2023 candidates)) who were placed by Kenya Universities and Colleges Central Placement Services (KUCCPS) in universities inadequately funded," she said.
The State Department of Higher Education is facing a shortfall of Sh22.9 billion with HELB budget reduced to Sh710 million from Sh31.9 billion with Universities Fund reduced by Sh2.6 billion from the initial Sh19.6 billion.
"The students are due to report in their respective universities in September 2024. The resultant deficit for the Financial year 20204/2025 printed estimates is Sh22, 897 million," Inyang'ala said.
Apart from first year students, the Higher Learning Principal Secretary added that continuing students in the universities will also be affected due to budgetary cuts.
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The Differentiated Unit Cost (DUC) funding for the continuing students is only Sh23 billion which represents 38.75 percent with the optimal funding level at 80 percent.
"The state department is requesting a higher allocation of 50 percent of the DUC, which is Ksh 29,024, 632,379 to enable universities to operate optimally. This indicates that there is a significant shortfall in the current funding allocation for DUC," the PS said.
The same fate will bedevil government sponsored students in Private Universities risks as their budget has been reduced by Sh1.8 billion from an initial Sh2.3 billion to the current Sh574.8 million.
The ripple effect will be continuing students from poor households will be forced to abandon their studies if they have no alternative source of funding.
"With reduced funds, students may struggle to cover the increased costs of tuition fees, living expenses and other essential student services, making it impossible for them to sustain their academic pursuits," PS Inyang'ala said.
Tinderet MP Julius Melly warned that the budget which mostly affect the youthful generation will now trigger demonstration across the country asking why the government was sabotaging itself.
"How did the National Treasury wake up one day and make such huge cuts without carrying out consultations,"Melly said.
"Tell us the principle you used to reduce money for scholarships and HELB given that we are here because of these Gen Z's. Do you want to take us back to the streets," Lugari MP Nabii Nabwera added.
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