Kenyan Universities Warn of Sh100bn Shortfall as They Reject Funding Lecturers’ CBA Demands

Kenyan universities warn of a Sh100 billion funding shortfall, stating they cannot afford to meet lecturers’ 2025–2029 Collective Bargaining Agreement (CBA) demands without new government allocations, according to Public Universities Vice Chancellors Committee Chairperson Prof Daniel Mugendi Njiru.

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Primary source Nation

Public universities in Kenya have raised urgent concerns over their financial sustainability, warning that they cannot meet the 2025–2029 lecturers’ Collective Bargaining Agreement (CBA) demands without fresh funding from the National Treasury. Prof Daniel Mugendi Njiru, chairperson of the Public Universities Vice Chancellors Committee, highlighted the crisis during a September 1, 2026, meeting on the Kenya National Qualifications Framework, emphasizing that institutions are already grappling with a funding shortfall exceeding Sh100 billion. The universities argue that the proposed CBA, which includes a new salary structure for six academic grades, cannot be implemented under the current Student-Centred Funding Model, which does not account for such obligations.

The universities’ stance comes as the University Academic Staff Union (UASU) pushes for the CBA, which would require significant financial commitments. Prof Njiru stated that public institutions are “in a Sh100bn hole” and cannot absorb the additional costs, stressing that the National Treasury must intervene to prevent a potential collapse of academic operations. This position aligns with broader concerns about the sustainability of higher education funding in Kenya, where institutions rely heavily on government allocations that have not kept pace with rising operational demands. The universities’ refusal to fund the CBA unilaterally underscores the growing tension between academic unions and institutional leadership over resource distribution.

The financial impasse has significant public-interest implications, as it threatens the stability of Kenya’s higher education sector. A failure to resolve the funding gap could lead to delayed salary payments, reduced academic services, and diminished research capacity, all of which would impact the quality of education and workforce development. The National Treasury has not yet responded to the universities’ calls for intervention, leaving the situation in a state of uncertainty. Advocates for higher education reform argue that the crisis highlights the urgent need for a comprehensive review of funding mechanisms to ensure long-term institutional viability.

University Academic Staff Union officials have reiterated their commitment to negotiating the CBA, citing the need for fair compensation and improved working conditions for lecturers. However, the universities’ refusal to fund the agreement without government support has stalled progress. The standoff reflects deeper systemic challenges in Kenya’s education sector, where financial constraints often override labor negotiations. As the deadline for implementing the CBA approaches, stakeholders await a resolution that balances fiscal responsibility with the rights of academic staff, with the National Treasury’s role remaining critical in bridging the funding gap.

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