Handle university fee review with caution

A proposal by the vice-chancellors of public universities to charge higher fees makes economic sense but also calls for an urgent re-examination of the institutions’ financing model. They say they are unable to run the institutions effectively because the fees are too low amid the current economic realities.

The university bosses want students to pay Sh48,000 instead of Sh16,000. The government pays about Sh70, 000, while the Higher Education Loans Board gives some of the learners a maximum of Sh60,000 for books, food and accommodation.

These figures have remained unchanged for years although the cost of living has gone up, as has inflation. Meanwhile, the universities are expected to run efficaciously by properly compensating their teaching and non-teaching staff, maintaining well-equipped libraries and laboratories and providing learning materials — in short, maintaining high learning standards. Most of the institutions depend on the fees and, therefore, must maintain a good academic reputation for healthy enrolment figures.

However, raising tuition fees is the nuclear option and is, certainly, unsustainable. It also glosses over a complex problem that calls for a more thoughtful and realistic approach.

While most universities have income-generating projects to complement their revenues, some cannot keep afloat due to stiff competition from the private sector and also bad management decisions. They need to manage these businesses more competently, be more responsive to market needs and keep innovating to withstand competition and move with the times.

They should also seek endowments and share their expertise and knowledge with businesses and the wider economy through consultancies not only for profit, but also as economic drivers.

More significantly, the Universities Funding Board must implement its differentiated unit cost proposal where students are charged fees according to the courses they are studying. The current model, where each course is allocated a uniform fee of Sh120,000, is outdated and untenable. Obviously, some of the courses, especially those in the sciences, are more expensive to mount and maintain than languages and the arts. The differentiated unit cost model is the trend globally.

Helb, the study loans board, which recently said past students owe it about Sh7.2 billion, must pursue the defaulters relentlessly to help it increase capitation per student.

Overall, the universities must employ robust and prudent financial strategies to continue producing skilled graduates, carry out top-notch research and innovate to support economic growth.