The Tanzanian government is struggling to address the perennial funding crisis in higher education, with universities carrying a total debt of Sh100 billion. This financial strain is affecting the operations of institutions expected to train high-calibre manpower for national development. The crisis has led to a recent four-week lecturers' strike that disrupted learning in public universities, which was only ended by a Sh20 billion government deal.
The government intends to convert scholarships into loans and make students fully liable, but this proposal has met severe resistance. The Universities Fund faces a Sh16.26 billion shortfall for student scholarships in the 2026/2027 financial year, having only received Sh31.1 billion. This has raised concerns about the ability of students from poor families to access higher education.
Under the Tertiary Education, Placement and Funding Bill, 2026, the government plans to scrap scholarships and introduce 100 per cent loans. Critics have warned against removing safety nets for vulnerable households and forcing students from poor families to graduate with hefty debt burdens. This move is expected to increase the burden for students from poor families.
President William Ruto's administration had introduced a student funding model, but it flopped. A new model guarantees 100 per cent funding to any student in a public college or university regardless of family background. However, lack of clarity, the fate of continuing students, and the restriction of the fund to a loan have raised queries.
Stakeholders are opposing the repayment of loans a year after completing studies, demanding a distinction between completion and gainful employment. They have proposed a grace period for unemployment and underemployment. The National Assembly's Education Committee is leading public participation in the Tertiary Education, Placement and Funding Bill, 2026.
The higher education funding crisis and related problems must be resolved to ensure that universities can operate effectively. The government needs to address the concerns of stakeholders and find a sustainable solution to the funding crisis. The Universities Fund shortfall highlights the need for a comprehensive approach to funding higher education.
The outcome of the public participation and the fate of the Tertiary Education, Placement and Funding Bill, 2026, will have a significant impact on the future of higher education in Tanzania. The government must balance the need for sustainable funding with the need to protect vulnerable households and ensure that students have access to affordable education.
Key points
- The Tanzanian government faces resistance to its plan to convert scholarships into loans and make students fully liable.
- The Universities Fund faces a Sh16.26 billion shortfall for student scholarships in the 2026/2027 financial year.
- Stakeholders are demanding a distinction between completion and gainful employment and proposing a grace period for unemployment and underemployment.
