Parliament to hold meeting on university funding model

The National Assembly is expected to hold a Kamukunji today to allow clarification on numerous queries that have emerged over the current university funding model.

Speaker of the National Assembly Moses Wetang’ula said last week that the matter requires elaborate explanation and ruled that a Kamkunji be convened today to allow Education committee chairman, Julius Melly, to present a comprehensive report.

Members of the National Assembly had raised concern over the funding process and costing of programmes, saying it lacks clarity for a majority of parents and students, a situation that could lock out many young Kenyans from accessing university education.

“I invite all of you to attend a Kamkunji on Tuesday so that we can have explanations and those who have additional questions on this issue can ask so that it can be clarified as clearly as it can be,” Wetang’ula said last Thursday.

This came as the Ministry of Education affirmed that no student will be denied university admission because on their inability to pay the household component of the fees upfront in full.

In its response to queries raised to the Speaker on challenges facing higher education funding, the ministry said that the model, now in its second year, includes provisions for loans and scholarships to cover these costs.

The ministry, however, clarified that students will be required to pay their household contribution in installments before the end of semester, or according to the terms and conditions set by their respective institutions.

“If a student reports for admission but has not applied for government funding, the university will assist them in applying for scholarships and loans while continuing with the admission process. This support is provided because some students may lack access to facilities that would have enabled them to complete their funding application,” explained the ministry, in a 12-page document.

But if a student chooses not to apply for or is not interested in government scholarships and loans, they will be required to pay the actual program cost in installments, or according to the terms and conditions set by the university or Technical and Vocational Education and Training (TVET) institutions.

Under the Student-Centered Funding Model (SCFM), students are required to contribute a portion of their tuition fees based on their household's financial ability, with the contribution being determined by the banding system where students from higher-income households are expected to contribute more.

Continuing students who were already under the Differentiated Unit Cost (DUC) system will continue to receive funding based on the old model, with the ministry saying that this ensures a smooth transition for all students in both university and TVET institutions.

This comes against the backdrop of complaints of the categorization of some students who have stated that they were wrongly placed in a band that they cannot afford to pay.

Universities have already started releasing new letters to all the first batch of 125,893 students who have so far applied for loans and scholarships under the student centred model.

The ministry has however insisted that students have been placed in the right band, citing instances where a student was incorrectly assigned to a category by default in the issued letter despite Higher Education Loans Board (HELB) not having processed their application.

The ministry directed institutions of higher learning to ensure all letters reach the first year students by August 19, with the government set to disburse Sh25.3 billion in scholarship and loans to the 2024/25 students who have applied so far.

Similarly, it explained that the Means Testing Instrument (MTI) funding model aims to ensure equitable access to higher education by directly supporting students based on their financial needs, moving away from the previous block funding approach.

“This individualised, needs-based mechanism is designed to address disparities and improve access for all eligible students. The MTI has undergone rigorous review and validation to ensure accurate categorization based on socioeconomic status,” the ministry explained.

According to the ministry, categorisation into five socio-economic tiers is based on the extent of a student's need for financial assistance to cover higher education costs.

“This is determined by composite indicators including family structure and size, education and health expenditures, and affirmative action. Household income, representing total earnings from various sources, is the primary factor, with tiers ranging from low-income (below Sh5,995 per month) to high-income (above Sh120,000 per month),” it explained.

Students under the DUC model will continue to receive HELB bursaries in addition to their upkeep loans but those under student funding model, specifically the Kenya Certificate of Secondary Education (KCSE) 2022 cohort and above, will only have access to variable loans and scholarships.

This means they will not benefit from HELB-issued bursaries.

For the financial year 2024/2025, some 37,125 students under the DUC model will be allocated bursaries totaling Sh237 million.