The cabinet has stepped in to salvage the University of Nairobi (UoN) which is on the verge of sinking into debts and financial constraints.

During a cabinet meeting on Tuesday, December 17, 2024, cabinet secretaries approved the University of Nairobi Transformation Strategy, designed to address the institution’s challenges and restore its academic and operational excellence.

The cabinet explained that the university has faced financial challenges, including unpaid statutory deductions of Ksh4.1 billion, pension arrears of Ksh7 billion, and pending bills amounting to Ksh13.2 billion.

The CSs noted that the financial woes had resulted in staff and student strikes, leadership conflicts, and a decline in academic and support services.

Ruto’s Cabinet Secretaries further observed that the money issues had caused UoN to drop in its rankings.

Big 5 transformation agenda

“To tackle these issues, the university has launched the ‘Big 5’ transformational initiatives focused on Green Jobs, Innovation, Artificial Intelligence, Leadership, and Health Research. These initiatives aim to enhance the university’s resilience and align it with future workforce demands,” the statement shared by State House read in part.

“This strategy outlines eight strategic objectives with clear action plans and timelines, leveraging available resources and partnerships to restore the University of Nairobi to its leading position in higher education and research. This marks a critical step in revitalising the university and ensuring it continues to produce top-tier graduates and groundbreaking research,” it added.

According to a Cabinet resolution, the University of Nairobi is set to be transformed within 24 months following a directive issued by President William Ruto and approved by the university council.

Established in 1970, the University of Nairobi is Kenya’s oldest institution of higher learning, with 10 faculties, 312 academic programmes, and an enrollment of 46,946 students.

Despite its rich legacy, the institution has been grappling with financial hitches which have threatened to cripple major activities. The implementation of the Differentiated Unit Cost (DUC) model has resulted in a decrease in government funding for the university, creating a significant budget shortfall.

It also faces increasing operational costs, including staff salaries, utilities, and maintenance, further straining its finances.

Delayed payments from the government and students have also contributed to the university’s cash flow problems.