Under a new proposed funding formula, the Government will cut funds for Public Universities whose graduates fail to secure jobs within a year.
The new metric based on performance seeks to look into the graduate's employability rate one year after graduating from the public universities and cutting funds allocations on courses that are not marketable in the job market.
The Universities Fund (UF), established under section 53 of the Universities Act, 2012 and guides the government in allocating funds, recommended the formula.
The proposal is based on five performance indicators; absorption of an institution's graduates in the job market, research, and training on financial management for top officials.
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"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.
"The key performance indicators to be considered will be four-year graduation rate, graduate employability rate (one year after graduation) and research inputs," the proposal read in part.
Kenya has 452,089 students in its 102 public universities and campuses but still has a deficit of Sh6.2billion.
The country still suffers a high number of jobless graduates because of the lack in creating new jobs.
The move comes amidst the World Bank directive on the government to merge some cash-strapped public universities.
Recently, graduates were relieved after a bill tabled by youth Representative in the August House, Gideon Keter, was passed unopposed by the parliamentarians.
Job seekers in the new bill are not mandated to provide clearance certificates from state agencies such as KRA, HELB, EACC, DCI, and credit bureaus.
