University leaders have called for urgent governance reforms, warning that institutions risk falling further into financial distress, weaker innovation and declining research performance if leadership systems are not modernised.

🇰🇪 Breaking It Down

The warning emerged during a high-level higher education leadership forum held last week at Lancaster University in the United Kingdom, where university council chairpersons, vice chancellors and governance experts discussed the future of universities amid mounting financial and technological challenges.

Participants urged university councils and management teams to strengthen expertise in technology, finance, legal oversight and risk management, arguing that stronger governance is now essential for sound decision-making and long-term institutional stability.

The appeal comes as public universities continue to grapple with a severe financial crisis.

📌 What You Need to Know

More than 23 institutions are reportedly facing insolvency while collectively carrying about Ksh85.28 billion in pending bills.

The liabilities include unpaid supplier invoices, pension contributions, statutory deductions and outstanding bank loans that have accumulated over several years.

Among the institutions with the highest debt burdens are Egerton University, with Ksh25.5 billion, the University of Nairobi, at Ksh17 billion, Kenyatta University, with Ksh12.8 billion and Moi University, at Ksh10.4 billion, according to figures released in February 2026.

University leaders also warned that the rapid growth of artificial intelligence is reshaping higher education, forcing institutions to rethink teaching methods, curriculum design, digital infrastructure and how graduates are prepared for an evolving labour market.

The forum further examined alternative revenue streams, including commercialising research, expanding industry partnerships and growing endowment funds, as traditional sources of university funding become increasingly unreliable.

Speakers noted that governance weaknesses continue to affect many institutions, citing blurred responsibilities between university councils and management, limited technical expertise and inadequate use of data to guide strategic decisions.

📰 Source: Kenyans.co.ke