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Universities face tough times as budget hopes dashed


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The vice-chancellor of the University of Nairobi has asked the government to review the budgetary allocation to his university after the treasury failed to meet public universities’ requisitions for the forthcoming fiscal year. The total allocation to all public universities, which is US$200 million less than the amount requested, has dashed the hopes of several institutions facing a crippling cash crunch. The government has allocated US$982 million to her public universities for the 2017-18 financial year in the budget to be unveiled in parliament on 30 March. University administrators say the allocation is over US$200 million lower than the amount they had requested for the period. At US$721 million, however, the amount is 36% higher than the allocation in the current financial year. The research and innovation kitty for public universities has been set at US$42 million, up from US$37 million – a 13% increase. However, the lower-than-expected allocation means the universities themselves will have to effect budget cuts at a time when they are facing a series of challenges. Public universities agreed last week to increase salaries for lecturers by 17.5% after a 54-day strike that paralysed the sector. The agreed increase means universities will have to seek more funds to finance the increment. Professor Peter Mbithi has asked parliament to reconsider a budget cut of US$17 million slapped on the University of Nairobi. “We acknowledge that we have been facing financial challenges like any other public entity due to declining budgetary support. We have asked parliament to review the allocation,” Mbithi told reporters two weeks ago. New funding model Defending the budget cuts to universities, treasury said they were based on the new financing model known as the differentiated unit cost model, in terms of which state funds are allocated on the basis of the courses being taught at specific universities. Under the new policy, subsidies for science courses are relatively higher than those for arts. Data shows th

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