You can choose to see profit or you can choose to see private initiatives helping gov achieve it's education goals.
Gov is paying for a service year. It been calculated that to train a student, the university spend say 120k per annum per student. private universities are regulated by Gok and majority are owned by churches.
In any case the more profit they make; the more money KRA get from tax deductions; the more employment they create.
Bottomline; stop having a tunnel vision. This is win-win arrangement for gov that cannot build enough universities. This will spur growth in private universities to fill the gaps that exist in university education here.
Private universities are private entities. Their aim to not to educate but to make money. Why give private entities money on a silver platter?