Public University Students to Receive Both Scholarships and Loans as Govt Set Sh19.6bn
The national government has set aside Sh 19,6 billion to fund university students as the new funding model for universities and Technical and Vocational Education Training (TVETS) goes into effect in September of this year when admission for the 2022 Kenya Certificate of Education (KCSE) candidates commences.
University Fund CEO Geoffrey Monari stated that the government had also allocated Sh 34,1 billion to finance continuing students in all universities under the old funding model of Differentiated Unit Cost (DUC) for the 2023–2024 fiscal year.
Regarding the New Funding Model (NFM), Monari clarified that 130,485 students enrolled in public universities will receive both government scholarships and loans based on their level of financial need, whereas the 9,662 students enrolled in private universities will only be eligible for government loans.
Monari guaranteed that no student would be left out of the funding, as there were sufficient funds for everyone, and urged those who had received their acceptance letters to register for funding prior to the August 27 deadline.
Students can now access the Higher Education Financing portal at www.hef.co.ke or at any of the Huduma centres located throughout the country, according to the CEO. Applicants for the funding are required to adhere to the new guidelines established by the Ministry of Education.
During a media workshop in Naivasha, Monari stated that the new funding regime seeks to increase equity, fairness, and transparency in the distribution of government scholarships and loans to applicants for University and TVET admissions.
The new model was designed to address the uniformity and inequitable capitation observed under the differentiated unit cost (DUC) model, in which wealthy and disadvantaged students received the same amount of government funding.
Monari explained that universities and TVETs will no longer receive block financing in the form of capitation based on the DUC, the sustainability of which has been a challenge due to the widespread mismanagement of funds by individual universities.
Instead, according to Monari, the government has decided that university funding will be allocated to students based on their level of need, with vulnerable students receiving 82% scholarships and 18% HELB loans.
The students with the greatest need will receive 70% of scholarships and 30% of loans, while those with less need will receive 53% of scholarships, 40% of loans, and 7% from their families. Students with less financial need will receive 38% scholarships, 55% loans, and 7% from their families.
According to Dr Mercy Wahome, the chief executive officer of Kenya University and College Central Placement Services (KUCCPS), the new funding formula aims to provide students from the bottom of the pyramid with equal access to university education and technical and vocational education and training (TVET).
Under the new financing system, according to HELB manager Charles Ringera, funding will be allocated based on four criteria: program selection, household income band, positive performance, and government priority areas.
President William Ruto announced the new funding model at the beginning of this year and guaranteed that students would be amply supported to cover the cost of the program they select.
“No student will ever be left behind,” President Ruto promised after unveiling the new model.
The announcement paved the way for the admissions process for 2022 KCSE candidates, whose fate had been uncertain pending the release of the funding model.
About 92,350 students (29%) who will enrol in universities and TVET institutions this year have been identified as vulnerable and exceedingly needy and will receive full government support in the form of grants, loans, and bursaries.