Debt-ridden Kyambogo University Set To Increase Fees

Finances at Kyambogo University are beginning to dwindle, a month to the opening of the 2013/14 academic year. This dire financial financial situation is set to result into an increase in fees to raise revenue.

Documents seen by Red Pepper Online show that the university revenue is estimated to drop by 9.2 billion shillings this financial year. This is partly due to a shortfall in the government contribution to the university and donor funding.

According to the document, the funding shortly will lead to a deficit of over 290 million shillings in the non wage bill. As a result of the financial squeeze, the university administration has suspended the teacher development, Noma and Trust Africa ICBE Research projects.

Kyambogo University main building. The University is set to increase functional fees to cover the drop in revenue
Kyambogo University main building. The University is set to increase functional fees to cover the drop in revenue

The financial decline has also compelled Kyambogo University to increase its functional fees to raise revenues for the 2013/14 academic year.

A June 24th memo from the university secretary to the academics recommends the implementation of a string of increments on different functional fees as passed by the university council. It is believed that the increment in the fees structure will plug the budgetary deficits. Lawrence Madette, the spokesperson Kyambogo University has confirmed the financial challenges facing the institution.

The budgetary estimates for the financial year 2013/14 made by the university council show an estimated shortfall of 9.2 billion. Despite the budgetary shortfalls, the university is also indebted to the tune of 5 billion shillings to service providers, teaching and non-teaching staff salaries and NSSF arrears.

This has led to confiscation of property like the students boiler in the dining hall and the university dean of student’s bus. According to the documents, government owes Kyambogo University 2.7 billion shilling in tuition arrears for state sponsored students.

This is confirmed in a June 10th report prepared by the chairperson finance and resource committee which notes that of the 2.7 billion shillings, 1.8 billion is from the 2011/12 academic year.

Kyambogo’s budget is funded 67% by tuition from students, 32% government revenues and 1% by donors. However with the coming financial year, government contribution will drop by 3% and donor contributions by to 0.6%. The number of students coming to the university has also drastically dropped from 75,000 students last academic year to 53,000 students this academic year.

Kyambogo University budget is 66.4 billion shillings.

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