Why cash crisis looms at University of Nairobi

Kenya news, 

By OUMA WANZALA

There will be a looming financial crisis at the University of Nairobi following the decision by the government to reduce its annual funding coming from Sh6.2 billion inside current financial budget to Sh4.5 starting July 2017.

This specific will be due to the introduction of differenced unit costs (DUC) set to be implemented in July in which funding of public universities will right now be based on the cost of running academic programmes instead of the number of students enrolled.

This specific means universities offering courses such as medicine, dentistry, engineering, architecture as well as law will receive more cash for tuition compared with those largely offering arts as well as humanities.

The DUC funding formula will be determined by the actual costs of running a programme as well as ensures universities get realistic financial allocations to fund respective academic programmes.

STAFF LAYOFFS

The University of Nairobi will be right now warning that will the reduction in government funding will lead to staff layoffs, closing of core university programmes as well as possible shutdown of university operations.

“The implementation of DUC will impact on university budget since This specific was carried out without university involvement as previously agreed.

“Further, the figures applied for differentiated unit cost did not take into account the university’s input,” states a report by the university.

The report indicates that will the university will have a shortfall of Sh1.7 billion per year, which will translate to Sh142 million per month.

“The implications will be inability by the university to fund critical programmes e.g staff costs [of] Sh770 million per month.

“[There are] expected staff costs shortfall per month of Sh392 million as a consequence as well as This specific will lead to possible staff layoffs,” states the report.

TASK FORCE

The brand-new directive will be based on the recommendations of a task force on university funding that will was chaired by the vice-chancellor of the Technical University of Kenya, Prof Francis Aduol.

The report established that will This specific costs Sh600,000 to train a dentist, while medicine costs Sh576,000, veterinary medicine Sh468,000, pharmacy Sh432,000 as well as a general art degree Sh144,000.

Currently, the government allocates a uniform figure of Sh120,000 for every student enrolled in a public university, an allocation that will has been in force for more than 20 years.

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Why cash crisis looms at University of Nairobi

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