{"id":103372,"date":"2025-02-23T09:49:37","date_gmt":"2025-02-23T06:49:37","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=103372"},"modified":"2025-02-23T09:49:37","modified_gmt":"2025-02-23T06:49:37","slug":"higher-education-sector-faces-deficit-amid-budget-cuts","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2025\/02\/higher-education-sector-faces-deficit-amid-budget-cuts\/","title":{"rendered":"Higher education sector faces deficit amid budget cuts"},"content":{"rendered":"<p><strong>NAIROBI, Kenya, Feb 22- The State Department for Higher Education and Research is potentially facing a funding crisis in the upcoming 2025\/2026 fiscal year due to significant reductions in the proposed allocations for its recurrent and development expenditures.<\/strong><\/p>\n<p>The proposed allocation for the state department recurrent budget for the 2025\/26 FY stands at Sh142.3 billion against Sh264.4 billion, leaving a substantial shortfall of Sh122.1 billion.<\/p>\n<p>This funding deficit translates to a 46.1 percent funding gap, which could impact critical operations and programmes within the higher education sector.<\/p>\n<p>\u201cThe resource requirement presented to the Sector Working Groups (SWGs) for Recurrent Expenditure for FY 2025\/2026 was Ksh. 264,440.43 million. The proposed allocation to the State Department for Higher Education &amp; Research is Ksh. 142,311.0 million resulting in a shortfall of Ksh. 122,129.63 million,\u201d the State Department noted.<\/p>\n<p>Additionally, the state department development budget faces a Sh9.6 billion deficit following the Sh3.7 billion proposed allocations in the 2025\/26 fiscal year.<\/p>\n<p>\u201cOn Development Expenditure, the requirement was Ksh. 13,750 million against a proposed allocation of Ksh. 3,668 million resulting into a shortfall of Ksh. 9,615 million,\u201d it added.<\/p>\n<p>This shortfall represents a funding gap of 73.3 percent, potentially stalling key infrastructure and research development projects that are crucial for the growth and modernization of higher education institutions.<\/p>\n<p>In the 2024\/2025 financial year, the State Department received a gross allocation of Sh120.4 billion, of which Sh119.2 billion was for recurrent expenditure and Sh1.2 billion for development expenditure.<\/p>\n<p>The recurrent budget allocation of Sh119.2 billion included Sh74.1 billion from the government and Sh45.2 billion from Appropriations in Aid (AIA).<\/p>\n<p>The development expenditure of Sh1,220 million comprised Sh1,150 million in foreign financing from development partners and Sh70 million allocated by the government through the National Treasury.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NAIROBI, Kenya, Feb 22- The State Department for Higher Education and Research is potentially facing a funding crisis in the upcoming 2025\/2026 fiscal year due to significant reductions in the proposed allocations for its recurrent and development expenditures. The proposed allocation for the state department recurrent budget for the 2025\/26 FY stands at Sh142.3 billion [&hellip;]<\/p>\n","protected":false},"author":14459,"featured_media":58011,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1359,1383,1343,1395,1913,1467,1524,1430,11,1874,1485,1458,1,1472,1930,1478,1543,13,1982,1394,1968],"tags":[17394,7195,9681,934,22048],"coauthors":[13385],"class_list":["post-103372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-africa","category-aviation","category-banks","category-china-communications-construction-company","category-climate","category-companies","category-corruption","category-entertainment","category-featured","category-health","category-insurance","category-investments-in-africa","category-kenya","category-motors","category-partnerships","category-poverty","category-startups","category-technology","category-trade","category-transport","category-wildlife","tag-budget-cuts","tag-deficit","tag-faces","tag-featured","tag-higher-education-sector"],"yoast_head":"<!-- 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