What you need to know about the New University Funding Model

The new funding model

The Kenyan government has made significant changes to the way higher education is funded in the country, with a new model set to begin in the 2023/2024 academic year. The changes are intended to make higher education more sustainable and equitable over the long term.The new model will be student-centered and will take into account the level of need of individual students. This shall combine: 

• Scholarships – free money that does not need to be paid back but awarded based on financial need.
• Loans – required to be paid back over time with interest and are often given to help students cover the remaining cost of their education after scholarships and other forms of funding have been exhausted.
• Household contributions – contribution from parents, guardians etc.

Under the new funding model, students will be categorized into three levels of need, as shown below:

Summary,

1. Vulnerable students. Vulnerable students, who comprise 45,000 students joining universities and 42,000 students joining TVET institutions, will be FULLY FUNDED by the government. Their parents will not be required to contribute anything towards their education. This unprecedented move ensures that students from low-income households have equal access to higher education, with no financial contributions required from their families. The funding will come in the form of government scholarships and loans, providing much-needed relief to families at the bottom of the socioeconomic pyramid.
2. Less vulnerable students. Less vulnerable students will receive government scholarships of up to 53% and loans of up to 40% of their university education cost. Their households will be required to contribute 7% of the cost. Under the TVET category, these students will be eligible for government scholarships of up to 50% and loans of up to 30%. The remaining 20% of the cost will be covered by their households.
3. Able students. Students from Able households, joining University will be funded through a government scholarship up to a maximum of 38% of the cost of the program and 55% in form of loans. Their households will pay only s75. The difference between the less able and able is that the less needy students will get more scholarship, and less loan. The able students will get more loans and less scholarship. Under the TVET category, the able students joining TVET will be funded to the tune of 32% for government scholarship and 48% for government loans. The remaining 20% of the cost will be covered by their households.

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In addition the Government has announced the following radical changes :

• To ensure transparency in higher education pricing, all universities in Kenya will now be required to declare and publicize the actual cost of their programs on the KUCCPS portal.
• The University Funding Board will now share information on funding sources through its portal and streamline the application process, making it easier for students to access financial support for their studies.
• Students who are already enrolled in higher education programs will continue to receive support under the existing funding model, to ensure that they are not negatively impacted by the changes.
• To ensure that students are placed in institutions based on their academic qualifications and preferences, rather than their ability to pay, placement of students to universities and TVET will no longer be linked to funding.
• While private university students will be eligible for loans from The Higher Education Loans Board, they will not be eligible for government scholarships.
• Kenya National Bureau of Statistics to determine graduated fees: To ensure that fees are adjusted over time to reflect changing economic conditions, the Kenya National Bureau of Statistics will determine how fees will be graduated year-by-year.
• Placement service portal to open soon: The placement service portal will open once universities provide their program costs, giving students the information they need to make informed decisions about where to study.