PREMIUM The Sh28 billion budget hole risks varsities’ operations Public universities risk defaulting on core operational obligations if budget deficits continue to take root. Education 15 min ago Listen

Under the Differentiated Unit Cost (DUC) capitation model, the fund told the committee that it required Sh40 billion but only Sh23 billion was approved, leaving it with a deficit of Sh17 billion, leading to a cumulative Sh28 billion budget hole.

During the year under review, the fund told Parliament that under the student-centred funding model, it required Sh29 billion but only Sh18 billion was approved, leaving it with a Sh11 billion deficit.

According to the fund, the budget hole provides public universities with cash-flow constraints since scholarship and capitation funds support teaching, learning and institutional operations.