All Parents to Pay Fees as Govt Alters University Funding Formula
The government has revised the new funding formula for university and college students, which was initially designed to alleviate the financial burden on parents who couldn’t afford higher education costs. However, the revised formula now requires all households to contribute to the fees.
The updated funding model includes scholarships, tuition fees, household contributions, and student upkeep. Additionally, the previously proposed four student categories (vulnerable, extremely needy, needy, and less needy) have been expanded to five and are now referred to as “bands.”
In this adjusted formula, all students falling within the five bands will receive financial support ranging from Sh40,000 to Sh60,000, depending on their household’s financial capability.
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The revised plan expects all households to share part of the education expenses, in contrast to the initial plan that exempted the “vulnerable and extremely needy” from such costs.
Concerns about the viability of President William Ruto’s original funding plan led to the need for this revision. Under the initial plan, vulnerable and extremely needy students were not required to pay any household costs, with the government covering all expenses.
Only the “needy and less needy” were supposed to contribute seven percent toward university education, with varying percentages allocated to scholarships and loans.
The adjustments mean that students in the five bands will receive different proportions of scholarships and loans, with household contributions varying based on the category.
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The new category, known as band five, involves households contributing 40 percent of the cost, while students in this group will receive Sh40,000 for their upkeep.
The concerns over the initial funding plan’s long-term sustainability led to this revision. The Ministry of Education has been working diligently to address this funding dilemma, with ministry officials and funding institutions working together to find a solution.
As of now, a significant number of university and college students have applied for scholarships and loans, and the categorization process is ongoing.
The release of funds is still pending, and the higher education institutions are grappling with a financial crisis due to delayed government funding. Many universities are using funds meant for continuing students to support the budgets of new students who are yet to receive funding.
The National Treasury has come under scrutiny for the delays, and it is unclear when the universities and colleges will finally receive the required funds.
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The revised funding plan requires an estimated additional Sh7.5 billion to cover scholarships for new students, with a projected cumulative cost of approximately Sh15 billion for one academic year.
Despite these challenges, university officials are making efforts to manage their institutions effectively while awaiting the disbursement of funds. They are hopeful that the money will be transferred to the universities in the coming weeks as the categorization and validation process proceeds.
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All Parents to Pay Fees as Govt Alters University Funding Formula
