Government and Policy

Government Introduces New Students Funding Model For Higher Education

BY Getrude Mathayo · May 4, 2023 02:05 pm

KEY POINTS

President William Ruto announced plans by the State to increase the funding of universities as well as TVETs by 30.6 billion shillings to .84.6 billion shillings in the 2023/24 financial year, as part of a new higher education funding model.

The government has announced a new funding model for universities and technical and vocational education and training (Tvet) institutions that will be student-centered, and predictable, and that will encourage the institutions to seek other revenue streams.

This translates to a 50 percent increase in total funding and a 37 percent growth in funding per university student to 208,000 shillings, up from 152,000 shillings. The budgetary allocations for TVETs will also increase from 5.2 billion shillings to 10 billion shillings.

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President Ruto acknowledged that the annual 54 billion shillings funding budgeted for public universities were less than 50 percent of what tertiary institutions require.

The new framework will be applicable to the new cohort of students joining universities and Tvets and does not increase tuition fees. Universities have been forced to look for alternative funding methods, which have put the schools in debt.

Under the new model, universities and Tvets will no longer receive block funding in the form of grants based on the differentiated unit cost (DUC) currently in use. Instead, the government has resolved that university funding will be apportioned to individual students according to their level of need.

“Funding to students shall combine scholarships, loans, and household contributions on a graduated scale, scientifically determined by means testing instrument,” President William Ruto said in a televised address from State House Wednesday.

This is an instrument developed by the Higher Education Loans Board (HELB) that categorizes students into three levels of need – vulnerable, less vulnerable, and able.

The old model encouraged massive enrollments despite inadequate funding. Universities are currently indebted to the tune of 60.2 billion shillings. TVETs are also facing similar challenges due to the increase in enrollment.

President Ruto noted that the establishment of the new funding model’s blueprint was inspired by the fact that institutions of higher learning face funding challenges primarily due to the massive enrolment of students.

“The government has resolved that university funding will hence be student-centered and be apportioned to individual students according to their level of need. Funding to students shall combine scholarships, loans, and household contributions on a graduated scale, scientifically determined by means testing instrument,” he said.

Education Cabinet Secretary Ezekiel Machogu will take immediate action to operationalize the funding model in which students will be categorized according to 3 levels of need; vulnerable, less vulnerable, and able; they will then receive funding through government scholarships and loans.

“The government shall fully fund the vulnerable students who comprise 29% of students joining universities and these are 45,000 students who will be funded fully by the government. In our TVET institutions, 42,000 students will equally be funded fully by the State,” he said.