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Report: Makerere Should Form Private Company To Earn Extra Shs5.3bn Annually

Makerere Private Students

Uganda’s leading higher institution of learning, Makerere University has potential to raise Shs5.3bn annually in revenue if it forms a private company, a human resource audit report has revealed.

The report on the University recommends a private company so that the University taps into accommodation revenue.

The report recommended to the University management to emulate some universities that have formed companies to manage students’ accommodation on campus, arguing that if Makerere University adopted the same, it will enable the University concentrate on its core mandate of teaching, research and community outreach. 

“Makerere University should consider relinquishing this role to a University company. The total bed space at Makerere University is 4446. At MasterCard Foundation rate of Shs600,000 per bed per semester, this translates into Shs5.33bn per year,” the report reads in part.

The August 2019 report was handed over to the Vice Chancellor of Makerere University, Barnabas Nawangwe by the 10 member Human Resource Audit Committee, headed by Prof. Noble Banadda, Chairman Contracts Committee and other members included: Dr. Vincent Ssembatya- Director Quality Assurance, Dr. Sylvia Nannyonga, Dr. Josephine Nabukenya, Dr. Paul Omach, Dr. John Mango, Dr. Godfrey Akileng, Andrew Abuyang, Richard Mugisha and Julius Lebo.

The Committee’s terms of reference was to assess the teaching load of staff, profile current University staffing structure and assess their suitability in addressing the human resource needs of the university, study cost effectiveness of the current University staffing structures and their financial implications.

The Committee pointed out that Makerere University through its Public Procurement Unit has contracted private hostels namely; Kare hostel- 200scholars, Makerere International Hostel-273 students, and Makerere Garden Courts-200 scholars to host all 741 students sponsored by MasterCard Foundation at Shs600,000 per bed per semester.

Makerere University has 12 halls of residence including: Africa-396 bed space, CCE-409, Mugenyi Flats-121, Galloway-93, Kabanyolo-89, Livingstone-490, Lumumba-449, Mary Stuart-531, Mitchell-494 Nkurumah-465, Nsibirwa-446 and University Hall-463 bringing total number of bed space at 4,446.

Based on the financial projections, a private company would collect Shs2.667Bn per semester, further translating into Shs5.335Bn annually.

The Committee members argued that very few if any hostel has such a turnover as Makerere University and that private hostels outside Makerere University main campus would find it hard to complete with Makerere brand, walkable distance from lecture rooms and library and also social power and company on campus.

The report recommended, “A University company would be very ideal to run halls of residence as a business and would focus Makerere University on its core mandate of teaching research and community outreach.”

The report was part of the documents Makerere University top management furnished to Parliament’s Public Accounts Committee as evidence to queries raised in the December 2019 auditor general’s report. 

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