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Private varsities seek tax waivers after new funding model kicks off

Private varsities seek tax waivers after new funding model kicks off
Some of the more than 800 graduands at Gretsa University, Thika. PHOTO/Print
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Implementation of the education reforms has hit private universities hard, prompting the institutions to appeal for tax waivers from the government.

Gretsa University Chancellor Prof Kibathi Mbugua said the reforms have seen a drastic fall of student enrolment in private institutions following scrapping of the Government Sponsored Students (GSS) program.

Speaking during the University’s graduation ceremony that saw some 800 graduands conferred with Degrees, Diplomas and Certificates in Thika, Kiambu county, Prof Kibathi said they are grappling with financial challenges occasioned by the declining students’ population and high taxes.

Innovative courses

“Unlike was the case before where they would get government sponsorship, currently students have to apply for the Higher Education Loans Board (HELB) and wait for funds for them to join private universities. This has seen the number of students reduce drastically,” Prof Kibathi disclosed.

As a result, he said, they have been forced to introduce more innovative courses to market the University and attract more students.

The Chancellor added: “The Government should partner with private institutions by waiving various taxes to enable them to remain afloat in business and continue bridging the gap in higher learning where the government is overwhelmed by demand.”

He pointed out that private sector education providers have been expanding their institutions to effectively and conveniently handle students, hence, the government should consider extending tax reliefs in all building materials approvals, equipment and other areas.

“At times we receive donor help including learning equipment but they are usually slapped with heavy taxation including hefty importation duty. These are some of the areas we are seeking government intervention to scrap the taxes, 

“We are serving our children by providing them with the relevant education for them to become productive and transformative citizens,” Prof Kibathi maintained.

At the same time, the Chancellor divulged that the University is introducing three new programs which will enhance students’ employability.

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