State to Slash Funding for Universities with Jobless Graduates in Proposed Formula


Kenyan graduates [Photo/Courtesy]

Public Universities with a low number of graduates being absorbed into the job market could in the coming years experience reduced funding from the state if a new formula based on performance is adopted.

The formula has been proposed by the Universities Fund, a government body that guides the allocation of State funds to public universities.

The board proposes five performance indicators in the review. These include absorption of an institution’s graduates in the job market, research and training on financial management for top officials.

In the current formula, public varsities receive funding based on the number of students and the cost of courses offered by the institutions.

Read: Covid-19 Impact: Over 400 Show Up For Auditions For Single News Anchor Slot

The changes spell doom to institutions with a high number of graduates who miss job opportunities within a year after graduation.

The formula is aimed at encouraging institutions of higher learning to invest more in marketable courses amid the high unemployment rate in the country.

“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,” UF’s board says in the draft.

Read Also: At Least 287,481 Jobs Lost Between January And March, KNBS Report Reveals

“The key performance indicators to be considered will be four-year graduation rate, graduate employability rate (one year after graduation) and research inputs.”

The proposal comes at a time the state is under pressure from the World Bank to close and merge some of the cash-strapped public universities, citing duplication of courses and the need to cut spending.

Email your news TIPS to or WhatsApp +254708677607. You can also find us on Telegram through

Written by Wycliffe Nyamasege


Leave a Reply

Exit mobile version