NAIROBI, Kenya — Kenya’s higher education funding model is under intense scrutiny after an audit revealed systemic failures that have left many deserving students without financial aid — while others who were ineligible benefited unfairly.
The report by Auditor-General Nancy Gathungu cites poor inter-agency coordination, a broken tracking system, and questionable implementation of the Means Testing Instrument (MTI) as key weaknesses undermining the integrity of the programme.
“The model is not integrated with the KUCCPS system to ensure seamless tracking of students from placement to funding,” the report states, referring to the Kenya Universities and Colleges Central Placement Service.
Ghost Beneficiaries and Unjust Exclusions
According to the audit, some beneficiaries had deferred their studies, been expelled, or never reported to university — yet still received funding.
Meanwhile, deserving students were locked out due to duplicated or missing personal data.
The report also found that funds were disbursed before student placements were confirmed, suggesting a severe lack of coordination between agencies tasked with administering the new model introduced in 2023 under President William Ruto’s administration.
“There is no coordination between the government agencies dealing with higher education student support,” the report adds.
Equity and Inclusion in Question
Touted by the government as a fairer and more student-focused alternative to previous schemes, the model uses an MTI to place applicants in one of five funding bands — determining how much support they receive via scholarships, loans or family contributions.
But the Auditor-General found that the MTIs used in the system differed from the officially approved versions — resulting in students being inaccurately classified, with direct consequences on the amount of aid they received.
Accessibility Gap in Marginalised Areas
The report further highlights low public awareness, particularly in marginalized regions, as a key factor that excluded many eligible applicants — especially students living with disabilities and those from remote or pastoralist communities.
In addition, the model lacks customized financial products, with the report noting that Muslim students had raised concerns over the absence of Sharia-compliant options.
Sustainability at Risk
The audit also casts doubt on the long-term viability of the funding model, citing high loan default rates driven by widespread graduate unemployment and underemployment.
“Loan repayment burden due to high unemployment and underemployment rates is making it difficult for graduates to repay their loans,” the report warns. “This threatens the sustainability of the revolving fund.”
The findings present a serious challenge to the government’s push for equitable access to university and college education and raise fresh questions over accountability in the management of public funds.
