Government and Policy

Parents To Start Paying University And College Fees In New Funding Formula

BY Getrude Mathayo · October 27, 2023 10:10 am

All parents in the universities and colleges with now dig deeper into their pockets to pay school fees for their children as the government has reviewed the new funding formula for students which was initially designed to alleviate the financial burden on parents who could not afford to pay school

However, according to the revised formula, it requires all households to contribute to the fees. The new funding formula has been altered a little to factor in scholarships, tuition fees, household contributions, and upkeep for students.

The previously proposed four students’ categories of vulnerable, extremely needy, needy, and less needy as were proposed under the new formula, have been expanded to five and renamed ‘bands.’ In this adjustment formula, all students listed in the five bands will get a boom of between Sh40,000 to Sh60,000, graduated based on households’ financial strength

According to the revised plan, all parents will now share part of the education expenses in contrast to the initial plan that exempted the vulnerable and needy from such costs. The review was necessary as questions emerged over the sustainability of the proposed formula unveiled by President William Ruto.

Under the initial plan, the ‘vulnerable and extremely needy’ were exempted from any household costs as the government planned to pay for all the bills. The review means that students in the five bands will receive different proportions of scholarships and loans with household contributions varying based on category.

Students under the ‘vulnerable’ category were to get 82 percent in scholarships and 18 percent in loans with zero percent from households. The new category known as band five involves households contributing 40 percent of the cost while students in this group will receive 40,000 shillings for their upkeep.

The ‘extremely needy’ were to get 70 percent in scholarships and 30 percent in loans and were not required to pay anything out of pocket. Those categorized as ‘needy’ were to receive government scholarships of up to 53 percent and loans of up to 40 percent with their households paying seven percent of the cost.

While those categorized as ‘less needy’ will get government scholarships of up to 38 percent and loans of up to 55 percent with their households paying seven percent of the cost.

The concern over this initial finding plans for long-term sustainability led to this revision. The Higher Education Loans Board (HELB) chief executive Charles Ringera said that under band one, (previously called vulnerable), students will receive 70 percent scholarships and 25 percent towards loans. Parents in these households will now pay five percent of the fees cost.

He added that students will also be given a boom of Sh60,000 to cater for their upkeep. Under band three, (previously needy), students will receive 50 percent scholarships and 30 percent loans. Parents will foot 20 percent of the cost and the students here will receive Sh50,000 upkeep money.

The adjustments were made amid concerns about the sustainability of the initial funding formula. The government official suggested that the original plan might be too costly in the long run. The Ministry of Education has been working to resolve this funding stalemate.

As of now, a significant number of college and university students have applied for scholarships and loans and the categorization process is ongoing. Despite this, there has been concern over the financial crisis faced by public universities and colleges due to delayed funding by the government.

The government has yet to disburse funds allocated to universities, leading to financial challenges in these institutions. University Vice-Chancellors have been managing the crisis, using funds meant for continuing students to support the budgets for new students.

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