Public universities in Kenya must undergo radical transformation and begin operating like businesses if they are to survive the deepening debt crisis, top government officials have warned.
Speaking during the inaugural National Retreat for Public University Councils in Mombasa, Higher Education Principal Secretary Beatrice Inyangala said the institutions are drowning in debt due to poor management and outdated administrative structures. She stressed the urgent need for structural reforms to restore financial stability.
“Most of our universities are in crisis. The time to change our future is now. We must reengineer university management and adopt cost-cutting measures,” Inyangala said.
The PS cited inefficiencies, reduced government funding, and mounting debts as major threats to the survival of public universities. Institutions like Kenyatta University (Sh12.38 billion), the University of Nairobi (Sh12.22 billion), and Jomo Kenyatta University of Agriculture and Technology (Sh9.13 billion) are among the largest debtors, owing billions to suppliers, statutory bodies like KRA and NSSF, pension schemes, and contractors.
Inyangala urged university councils to embrace financial innovation, enterprise models, and cost-efficiency strategies. Strengthening internal audit systems and risk management mechanisms, she said, would be key to turning the tide.
National Assembly Education Committee Chair Julius Melly echoed the PS’s sentiments, urging university leaders to seek alternative revenue sources. “You must be financially self-reliant through student enrolment, research grants and enterprise development. Universities should no longer be seen solely as academic institutions but as entities capable of generating income,” he said.
President William Ruto’s senior economic advisor Moses Kuria took a more hardline stance, calling for university vice chancellors to adopt entrepreneurial mindsets. “If a VC can’t run a business like Safaricom, they shouldn’t be running a university,” he stated.
Kuria also advocated for redefining the role of chancellors and using technologies like Artificial Intelligence to develop sustainable commercial models. He emphasized that university councils must serve as unifying forces, bringing stakeholders together to create attractive and competitive institutions.
The call signals a paradigm shift in higher education management, aiming to equip universities with the tools and mindset necessary for long-term financial sustainability.
