Universities with most unemployed graduates to lose state funds in proposed formula

The Universities Fund has proposed a new formula of allocating money to public universities that could see institutions with most unemployed graduates miss out.

According to a report published by Business Daily on Friday, November 26, the University Fund proposed that allocation be based on certain indicators and factors.

Some of the key indicators recommended include absorption of the school’s graduates in the job market, research and training on financial management for top officials.

Universities that offer courses that are not very marketable stand to be the most affected.

“Performance-based funding is funding aimed at allocating a portion of universities' education budget according to specific performance measures. It makes funding allocating more transparent and more competitive.

“The key performance indicators to be considered will be four-year graduation rate, graduate employability rate (one year after graduation) and research inputs,” UF’s board draft proposal reads.

Kenya today has a big number of unemployed graduates in an economy that is struggling to produce new jobs.

The number of students enrolled in Kenyan universities has increased in recent years, boosted by government funding for students in private colleges and the establishment of new campuses.

According to a recent economic survey, public universities had 452,089 students last year, up from 412,840 the previous year.

Kenya has 102 public universities and campuses, which had a Sh6.2 billion deficit in the fiscal year ending in June despite received over Sh70 billion from the Treasury to conduct their operations.

The World Bank has pressed the government to close and consolidate some of the state's cash-strapped public universities, citing course duplication and the need to slash spending.