{"id":146894,"date":"2026-07-15T14:02:54","date_gmt":"2026-07-15T14:02:54","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/funding-shortfalls-not-ministry-delays-behind-education-financing-crisis-cs-ogamba-says\/"},"modified":"2026-07-15T14:02:54","modified_gmt":"2026-07-15T14:02:54","slug":"funding-shortfalls-not-ministry-delays-behind-education-financing-crisis-cs-ogamba-says","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/funding-shortfalls-not-ministry-delays-behind-education-financing-crisis-cs-ogamba-says\/","title":{"rendered":"Funding Shortfalls, Not Ministry Delays, Behind Education Financing Crisis, CS Ogamba says"},"content":{"rendered":"<p>NAIROBI, Kenya, Jul 15 \u2013 Education Cabinet Secretary Julius Ogamba has attributed persistent delays in capitation and government funding to schools, TVET institutions and universities to inadequate budget allocations and delayed Exchequer releases by the National Treasury, dismissing claims that the Ministry of Education is withholding funds.<\/p>\n<p>Appearing before the National Assembly\u2019s Public Investments Committee on Governance and Education (PIC-G&amp;E), Ogamba said the ministry submits funding requests to the Treasury on time and disburses funds to institutions immediately after receiving them.<\/p>\n<p>He argued that the real challenge lies in the widening gap between the education sector\u2019s financial requirements and the resources allocated by the government.<\/p>\n<p>\u201cThe Ministry does not sit on funds. The challenge is that the resources released by the National Treasury fall significantly below the actual requirements, and when Exchequer releases are delayed, institutions inevitably experience cash flow constraints,\u201d Ogamba told MPs.<\/p>\n<p>The committee is reviewing Auditor-General reports covering the 2018\/19 to 2024\/25 financial years, with particular focus on delayed capitation to basic education institutions, teacher training colleges, Technical and Vocational Education and Training (TVET) institutions and public universities.<\/p>\n<p>Ogamba appeared before the committee alongside Higher Education Principal Secretary Beatrice Inyangala, TVET Principal Secretary Esther Thaara Muoria, Universities Fund Acting Chief Executive Edwin Wanyonyi and Higher Education Loans Board (HELB) Chief Executive Geoffrey Monari.<\/p>\n<p>On TVET financing, the Cabinet Secretary said government capitation has remained at Sh5.2 billion annually despite a sharp rise in student enrolment.<\/p>\n<p>The allocation covers learners under both the previous capitation system and the student-centred funding model introduced in the 2023\/24 financial year, but Ogamba said funding has failed to keep pace with demand.<\/p>\n<p>He revealed that actual disbursements have in several years fallen below approved allocations, leaving institutions with significant financing gaps.<\/p>\n<p>The ministry has so far released Sh7.9 billion in scholarships under the student-centred funding model, benefiting nearly 200,000 TVET trainees.<\/p>\n<p>However, the programme is already facing a cumulative funding deficit of approximately Sh14.9 billion.<\/p>\n<p>Ogamba maintained that delays in capitation and scholarship disbursements are largely due to late Exchequer releases by the Treasury rather than inefficiencies within the ministry.<\/p>\n<p>\u201cOnce the funds are received from the National Treasury, they are transferred immediately to institutions,\u201d he said.<\/p>\n<p>The Cabinet Secretary painted a similarly bleak picture for public universities, saying years of inadequate financing have left institutions struggling to meet their obligations.<\/p>\n<p>According to Ogamba, universities required Sh29.9 billion to support students under the new funding model in the 2025\/26 financial year but received only Sh18 billion, creating a deficit of nearly Sh11.5 billion.<\/p>\n<p>Students still funded under the previous Differentiated Unit Cost (DUC) model required Sh40.4 billion, yet only Sh23 billion was allocated, leaving a further Sh17.4 billion shortfall.<\/p>\n<p>Overall, public universities required Sh70.3 billion in scholarships and grants but received only Sh41.2 billion, resulting in a cumulative funding gap of Sh28.9 billion.<\/p>\n<p>Ogamba insisted that the deficits highlighted by the Auditor-General should not be interpreted as money withheld by government agencies.<\/p>\n<p>\u201cThe figures reflect budget shortfalls arising from inadequate allocations, not undistributed Exchequer funds. Every shilling released to the Universities Fund was disbursed to eligible public universities,\u201d he said.<\/p>\n<p>He warned that the persistent mismatch between funding requirements and allocations has contributed to mounting pending bills, delayed supplier payments and increasing difficulties for universities in meeting payroll obligations and sustaining teaching, research and student services.<\/p>\n<p>\u201cUniversities require adequate and predictable financing to meet their obligations as they fall due,\u201d he said.<\/p>\n<p>To address the crisis, Ogamba said the ministry has intensified engagements with the National Treasury in pursuit of supplementary allocations while ensuring Exchequer requisitions are submitted on time and student enrolment data is regularly verified to support equitable distribution of resources.<\/p>\n<p>He added that the Universities Fund reconciles student records before disbursing grants to eliminate duplicate claims and ensure funding is based on verified enrolment figures.<\/p>\n<p>The Cabinet Secretary appealed to Parliament and the Treasury to increase allocations to the education sector, arguing that efficient administration alone cannot resolve the financial pressures facing institutions.<\/p>\n<p>\u201cThe financial sustainability of universities cannot be achieved through prompt disbursement alone where available resources remain inadequate. Likewise, adequate allocations cannot support institutional planning if Exchequer releases remain unpredictable,\u201d he said.<\/p>\n<p>The committee also sought an explanation over the rising wage bill in public universities, which has repeatedly been flagged by the Auditor-General as exceeding recommended fiscal limits.<\/p>\n<p>Ogamba defended current staffing levels, saying universities are labour-intensive institutions that depend on highly qualified academic and technical personnel to deliver teaching, research and innovation.<\/p>\n<p>He attributed rising personnel costs largely to successive Collective Bargaining Agreements (CBAs), whose financial obligations have outpaced government funding.<\/p>\n<p>The CS said the government released Sh3.8 billion in December 2025 to settle verified arrears arising from the 2017-2021 CBA, while a further Sh3.8 billion has been provided in the current financial year for the same purpose.<\/p>\n<p>He added that the National Treasury has committed Sh2.73 billion towards implementing the 2021-2025 CBA, while negotiations for the 2025-2029 agreement will be guided by affordability assessments before financial commitments are finalised.<\/p>\n<p>At the same time, the ministry has directed universities to align recruitment with approved staff establishments, strengthen workforce planning, eliminate duplication of roles and tighten controls on personnel expenditure.<\/p>\n<p>However, Ogamba cautioned against blanket staff reductions, saying universities must retain sufficient academic and technical capacity to effectively discharge their mandate.<\/p>\n<p>\u201cOur objective is not merely to reduce the wage bill, but to ensure staffing remains efficient, affordable and aligned with institutional needs. Sustainable financing of higher education requires adequate funding, predictable disbursements and prudent financial management working together,\u201d he said.<\/p>","protected":false},"excerpt":{"rendered":"<p>NAIROBI, Kenya, Jul 15 \u2013 Education Cabinet Secretary Julius Ogamba has attributed persistent delays in capitation and government funding to schools, TVET institutions and universities to inadequate budget allocations and delayed Exchequer releases by the National Treasury, dismissing claims that the Ministry of Education is withholding funds. Appearing before the National Assembly\u2019s Public Investments Committee [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-146894","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/146894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=146894"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/146894\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=146894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=146894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=146894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}