Public universities whose graduates fail to secure a job within a year will be punished by the government if the proposed law is passed.
The state is planning to punish these institutions by reducing the amount of money channelled to them. This will be put in place once the proposed funding formula to share funds to the institutions based on performance is passed.
The formula was proposed by the University Fund – a body mandated to guide the government on how to allocate funds to public universities.
This formula is based on five performance indicators including absorption of an institution’s research, graduates in the job market, and training on financial management for top officials.
The new formula will see the abandonment of the old formula that was saw institutions get funded based on the number of students they enrol and the cost of courses they offer.
The formula will see a reduced allocation to the universities with courses that are not marketable in the job market.
The new funding formula comes at a time when Kenya is witnessing a rise in the number of universities and campuses as well as degree courses that offer little opportunities in the job market.
“Performance-based funding is funding aimed at allocating a portion of universities education budget according to specific performance measures. It makes funding allocating more transparent and more competitive,” UF’s board says in the draft.
“The key performance indicators to be considered will be four-year graduation rate, graduate employability rate (one year after graduation) and research inputs.”
The formula also comes at a time when the World Bank has been putting the Kenya government to close and merge some of the cash-strapped public universities, citing duplication of courses and the need to cut expenditure.
The rise in university enrolment which has been witnessed in the past few years has put pressure on the government to create jobs whose number has been on the rise amid a slowdown in the creation of new jobs.