The new university funding model introduced by the government has sparked significant interest and discussion among students, parents, and educators.
Here are five key things to know about this new approach to financing higher education:
1. Financial support based on economic need
The new funding model is designed to provide financial support based on a student’s economic background.
It categorizes students into five bands according to their family’s monthly income.
Band 1: For families with a monthly income up to Ksh5,995.
Band 2: For families with a monthly income up to Ksh23,670.
Band 3: For families with a monthly income up to Ksh70,000.
Band 4: For families with a monthly income up to Ksh120,000.
Band 5: For families with a monthly income above Ksh120,000.
This approach ensures that the most vulnerable and financially needy students receive the most substantial support, while those from higher-income families contribute more towards their education.
2. Direct student support
Under the previous system, universities received block funding from the government, distributed as capitation based on the Differentiated Unit Cost (DUC).
The new model shifts focus from institutional funding to direct student support, meaning funds are now allocated based on the needs of individual students rather than the institutions they attend.
This aims to ensure that resources are directed where they are most needed.
3. Scholarships, loans, family contributions
The funding model operates through a combination of government scholarships, student loans, and family contributions.
Depending on their assigned income band, students receive a mix of these financial aids.
For instance, students from the lowest income band (Band 1) can receive up to 95% of their total education costs covered by scholarships and loans, leaving them with only 5% to contribute.
This percentage decreases as the family income increases, requiring higher-income families to contribute more.
In Band 2 the government scholarship will cover 60%, the loan will cover 30%, making the total support 90%. The family will contribute 10%.
For Band 3, the PS said the government scholarship will cover 50%, the loan will cover 30%, making the total support 80%. The family will contribute 20%.
Band 4 would receive 40% in scholarships and 30% in loans, with the remaining 30% covered by the family.
4. Upkeep loans for students
In addition to tuition support, the new funding model includes an upkeep loan designed to cover living expenses while students are at university.
The amount of this loan also varies according to the student’s income band, with those in lower bands receiving more significant support.
For example, students in Band 1 receive an upkeep loan of Ksh60,000, while those in higher bands receive slightly less – Band 2 Ksh55,000, Band 3 Ksh50,000.
5. Equity, access to education
One of the main objectives of this funding model is to enhance equity in access to higher education.
By tailoring financial aid to individual needs, the government aims to ensure that all students, regardless of their economic background, have the opportunity to pursue a university education.
The model particularly focuses on supporting students from vulnerable and extremely needy families, offering them a pathway to higher education that might otherwise be inaccessible.
Even though the new university funding model has been touted as a game changer, heated reactions have erupted as a section of Kenyans have complained that many needy students have found themselves wrongfully placed in fourth and fifth bands.
Embakasi East MP Babu Owino, a vocal advocate for educational reform and a frequent critic of government policies, is among those who have cast aspersions on the new university funding model.
The firebrand lawmaker and segments of the public feel that the new model may not adequately address the needs of the most vulnerable students.
