NAIROBI, Kenya – A cloud of confusion is hanging over the education sector following the introduction of the new Higher Education Funding Model, unveiled by President William Ruto on May 3, 2023.
The new model addresses the challenges faced by public universities and Technical and Vocational Education (TVET) institutions due to massive enrollment and inadequate funding.
However, it is now emerging that some students need to be categorised in the right bands under this new model.
Y News understands this raises concerns over their capabilities to raise the required fees.
For instance, David Baraka, who was among the top performers in Uasin Gishu County in last year’s Kenya Certificate of Secondary Education (KCSE), is required to pay Sh 170,000 per year, believes he’s been placed in the wrong band.
He has been placed in Band 5 with a household contribution of Sh 171,360 per year for a Bachelor of Pharmacy Programme at Kenyatta University.
“With the new band, I am supposed to pay Sh 57,170 per semester, which I believe is impossible with my parents’ income,” said Baraka.
What are the 5 Bands in the new Higher Education Funding Model
According to Principal Secretary of the State Department for Higher Education and Research Beatrice Inyangala, the new university funding model is as follows:
Band 1: For families with a monthly income up to Sh5,995.
Band 2: For families with a monthly income up to Sh23,670.
Band 3: For families with a monthly income up to Sh70,000.
Band 4: For families with a monthly income up to Sh120,000.
Band 5: For families with a monthly income above Sh120,000.
How Kenyan parents are reacting to the new Higher Education Funding Model
However, Baraka’s father, Gordon Okoth, is still surprised by the new fee structure.
“Honestly speaking, I believe that band is a burden to me as a parent reflecting my income,” said Okoth.
As a sole breadwinner, Okoth earns a monthly net income of Sh 25,000; essentially, he should be placed in Band 2.
Y News has established that 11,393 students have been placed in this category out of 113,105 applicants.
“I want to urge the government to review my appeal, which I believe I should be in Band 2. I am also appealing to well-wishers to come on board and chip in to help me pursue my dream,” Baraka lamented.
This new funding framework replaces the Differentiated Unit Cost (DUC) previously used to finance universities. The model prioritises a student’s financial need and separates placement from funding. Under this model, universities and TVET institutions will no longer receive block funding in the form of capitation.
Instead, student funding will be provided through scholarships, loans, and household contributions.
Following the introduction of the new model, students will have access to scholarships and loans to finance their higher education.
The Universities Fund will offer scholarships to students ranging from 30% to 70% based on their level of need.
Any remaining deficit will be covered through household contributions and loans. Students interested in receiving scholarships must formally apply through the Higher Education Financing (HEF) portal, accessible at www.hef.co.ke.
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The Means Testing Instrument (MTI) tool will be utilised to assess the level of need for funding students who apply for scholarships.
Education Cabinet Secretary Julius Migos Ogamba, while presiding over the 8th graduation ceremony and the official commissioning of Kilimanjaro hostel at Murang’a University of Technology, ordered all public universities to admit all students to their institutions as student appeals are in process.
“The ruling Kenya Kwanza administration is determined to ensure a robust and efficient university education that effectively executes its teaching, research, and innovation roles. This determination has been overtly exemplified by the ongoing government efforts to implement a student-funded model which seeks to restore the financial health of universities while focusing on supporting students based on their level of need. I wish to announce that over 130,000 first-year students who were the offshoot of the 2023 KCSE have already been awarded funds under the student-centred model,” said CS Ogamba.
The CS also instructed HELB and the Universities Fund to process appeals and release the results within three weeks.
“The government has set aside Sh 28.3 billion for loans and scholarships in this financial year for first-year students. I must admit that for any new system, we are facing a few teething problems in awarding loans and scholarships with reports that some beneficiaries could have been placed in bands that do not reflect the economic realities,” CS Ogamba explained.
How the new Higher Education Funding Model is being implemented
Y News further has established that the new Higher Education Funding Model is being implemented collaboratively by several key entities, including the Universities Fund (UF), Higher Education Loans Board (HELB), Kenya Universities and Colleges Central Placement Service (KUCCPS), and the State Department for Technical and Vocational Education and Training.
Under this model, UF will grant students scholarships, HELB will extend student loans, and KUCCPS will oversee the placement of KCSE graduates into higher learning institutions.
Additionally, the institutions will act as recipients of the loans and scholarships provided to students through fees, while parents will contribute household funds toward their children’s education.
Under the new Higher Education Funding Model, only candidates who took their KCSE examination from 2022 onwards are eligible for scholarships.
Students can apply for scholarships and loans online at www.hef.co.ke or at www.universitiesfund.go.ke.
